Will Shareholders Agree to Sell Genentech?
Excerpt from the InvestorGuide.com Stock of the Day on 2/2/2009

About six months ago, Swiss drugmaker Roche offered to buy out all of Genentech's remaining stock in a deal worth $44 billion. This equals about $89 per share. This represented a 9 percent premium at the time. The board of directors evaluated this offer and about a month later, rejected the bid saying the price significantly undervalued the company's worth and growth potential. Little else has occurred since, but on Friday, Roche took the deal directly to shareholders asking to buy their equity for $86.50 per share. The US biotech firm advised shareholders not to take action so it can review its current position and prepare a formal response. Investors and analysts expect an announcement within two weeks. By the end of Friday, Genentech's stock closed at $81.50, indicating investors are complying. Having been rejected once by the company, will Roche be rejected a second time by shareholders? More >