Roche will not extend its tender offer for Illumina

In view of the apparent re-election of the incumbent directors of Illumina (Nasdaq: ILMN), a leading developer, manufacturer and marketer of life science tools and integrated systems for the analysis of genetic variation and function, at the firm’s annual general meeting yesterday, Swiss drug major Roche (ROG: SIX) has decided not to extend its increased hostile $51.00 cash tender offer for all of the shares of Illumina (The Pharma Letters passim). The offer will expire at 6:00 pm, New York City time, tomorrow (April 20, 2012).

Shareholders voted to re-elect all of Illumina’s incumbent directors at the meeting by a large margin, defeating an effort by Roche to gain control of the board. The news saw Illumina’s stock tumble more than 6% yesterday morning, to $41.25, below Roche’s original offer price, as the Swiss firm’s announcement indicated that Roche is giving up on its takeover bid, at least for the time being.

Severin Schwan, chief executive of Roche, said: “We continue to hold Illumina and its management in very high regard but, with access only to public information about Illumina’s business and prospects, we do not believe that a price above Roche’s offer for Illumina of $51.00 per share would be in the interest of Roche’s shareholders.”

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