Rebuffed by Ventana, Roche may increase its $3-billion bid

13 July 2007

Mumbai: Switzerland's Roche Holding AG, the world's biggest maker of cancer drugs, hinted that it may raise its $3-billion hostile takeover bid for US diagnostics maker Ventana Medical Systems Inc. after the Ventana board rejected the offer.(See: Roche makes hostile offer for Ventana ) In a letter to Ventana chairman Jack Schuler, Roche CEO Franz Humer described the offer as ``full and fair'' but left open the door to a compromise.

The board of Arizona-based Ventana Medical Systems Inc rejected Roche Holding's $3- billion offer, accusing the Swiss bidder of trying to snatch value from investors. Ventana advised shareholders to hold onto the stock.

"Roche is attempting to obtain for itself unique strategic value and synergies that we believe would accrue to the broader pharmaceutical industry and Ventana's stockholders over the near and long term," Ventana chairman Jack Schuler said in a statement.

Roche, after failing to engage Ventana in negotiations, launched an unsolicited bid for Ventana earlier this month, offering investors a 45-per cent premium to the stock's previous day's closing price.

Investors, meanwhile, bet on a sweetened offer from Roche, which wanted Ventana to broaden its diagnostic products and complement its in vitro diagnostic systems and oncology therapies.

Ventana investors expected Roche to bid up to $80.25, well above the $75 it offered.