Genentech committee rebuffs Roche bid

Genentech (NYSE:DNA) said a special committee of independent directors unanimously concluded that an offer by Roche (SWX:ROG) "substantially undervalues" the company. Genentech formed the committee last month to review the pharma's proposal to acquire the 44.1% of Genentech it does not already own for $89 per share in cash. On Wednesday, Genentech was up $0.52 to $98.37 (See BioCentury, July 28, 2008).

The company said the committee "would consider a proposal that recognizes the value of the company and reflects the significant benefits that would accrue to Roche as a result of full ownership." A Roche spokesperson said the pharma continues to believe its proposal is "fair and generous." ...