WILMINGTON, DEL. (CN) – Genentech shareholders say Roche Holding’s $43.7 billion takeover offer – $89 per share – is too low. The shareholders class action in Chancery Court claims Genentech is worth more than $100 per share.
Roche already owns 56 percent of Genentech, the world’s second-largest biotechnology firms. Roche’s $89 per share offer, announced Monday, was an 8.8% premium over Genentech’s Friday closing price. Among Genentech’s products are the cancer drugs Avastin and Herceptin.
Roche, a Swiss drug giant, paid $2.1 billion in 1990 for 60 percent of Genentech. Its holdings have decreased to 56 percent of the company since then.
Lead plaintiff, the Montgomery County Employees Retirement Fund, is represented by Chimicles & Tikellis.