Roche S Acquisition
pros and cons for each recommendation: Option A : Concede to the special committee’s position and raise price ,e.g, splitting the difference cons: This might not even work considering that they were willing to let negotiations drag on previously The more caveats attached, the lesser chances we have of making it attractive for the
Genentech Shareholders
We might not receive funding from investing bank.
Our recommended : price =98, 12.5 percent decrease of what they are asking. we analyzed other factors such as the economic downturn ,level of premium, Option B : hostile takeover /offer them a tender
Cons
we will need to determine a price
will also need a price high enough that the board and the special committee agrees with and do not make the recommendation (within 10 days of the offer)
create hostile environment for the Genentech’s managers and employees. free spirited
R and D for Genentech. The take over from Roche will affect their company culture. this would make integration much harder and we might not be able to benefit from some of the synergies.
there will be two further costs associated with the
We might lose the company culture.
the more caveats attached, the lesser chances we have of making it attractive for the
Genentech Shareholders
We might not receive funding from investing bank. pros A little bit more certain that we can successful acquiesce Genentech
We might have big saving after merger these two companies together because of synergies. After we successful merger two companies together, we have great influence on
Biotech industry and Pharmaceutical industry.
Nouncertainty for Genentech’s employees and board directors.( prevent the cultures from both company.)
Even though Roche should aim to avoid a hostile takeover, but in this scenario, this seems to be only way that Roche can acquire genentech. The more important question that should
Genentech Shareholders
We might not receive funding from investing bank.
Our recommended : price =98, 12.5 percent decrease of what they are asking. we analyzed other factors such as the economic downturn ,level of premium, Option B : hostile takeover /offer them a tender
Cons
we will need to determine a price
will also need a price high enough that the board and the special committee agrees with and do not make the recommendation (within 10 days of the offer)
create hostile environment for the Genentech’s managers and employees. free spirited
R and D for Genentech. The take over from Roche will affect their company culture. this would make integration much harder and we might not be able to benefit from some of the synergies.
there will be two further costs associated with the
We might lose the company culture.
the more caveats attached, the lesser chances we have of making it attractive for the
Genentech Shareholders
We might not receive funding from investing bank. pros A little bit more certain that we can successful acquiesce Genentech
We might have big saving after merger these two companies together because of synergies. After we successful merger two companies together, we have great influence on
Biotech industry and Pharmaceutical industry.
Nouncertainty for Genentech’s employees and board directors.( prevent the cultures from both company.)
Even though Roche should aim to avoid a hostile takeover, but in this scenario, this seems to be only way that Roche can acquire genentech. The more important question that should