Roche takes majority stake in Foundation Medicine

Foundation Medicine Inc. (NASDAQ:FMI) rose $22.81 (95%) to $46.74 on news that Roche (SIX:ROG; OTCQX:RHHBY) will acquire 52.4% to 56.3% of the company through a $1 billion cash and stock deal. Roche will pay $780 million in cash and purchase 5 million new shares at $50, a 109% premium to Foundation's close of $23.93 last Friday, before the deal was announced.

Roche spokesperson Ulrike Engels-Lange said Foundation will remain "operationally independent." Foundation's management team, including President and CEO Michael Pellini, will retain their positions. ...