BASEL (Thomson Financial) - Roche Holdings AG said has proposed to acquire
the outstanding publicly held interest in Genentech Inc. at $89.00 per share in
cash, or a total payment of approximately $43.7 billion to equity holders of
Genentech other than Roche. Roche acquired a majority in Genentech in 1990 and
currently owns 55.9 percent of all outstanding shares.
Roche expects the combination to generate annual pretax cost synergies of
approximately $750 million to $850 million, it said.
The transaction is expected to be accretive to Roche's earnings per share in
the first year after closing.
The combined company will generate substantial free cash flow that will
enable it to reduce acquisition-related debt rapidly, invest in further product
launches and retain strategic flexibility.
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