Looking ahead, the chairman of Swiss pharmaceuticals company Roche Holding said Friday it expects to have financing ready when its needed in the company's hostile takeover bid for U.S.-based Genentech.
Roche and Genentech broke off talks last July to reach a friendly deal. Friday, Roche slashed its previous offer for Genentech Inc by 2.8 percent and took the offer directly to shareholders.
Genentech rejected Roche's first offer $89 per share, or $44 billion after the company's board members found the offer too low and concerns that Roche did not have sufficient funding.
Roche, which already owns 55.8 percent of Genentech, is now making a public tender offer at $86.50 per share in cash, valuing the deal at $42 billion for the other 44 percent of the company. Roche spent months securing the finance for its original offer in July last year.
We are confident that we will have the financing available when the money is needed, Roche Chairman Franz Humer said, according to Reuters.
The plan is to use as financing partly our own funds, and then obviously bonds and then commercial paper and traditional bank financing. We will start by going to the bond market first, he added.
The new bid comes after the world's biggest drugmaker Pfizer Inc agreed to buy rival Wyeth for $68 billion was announced Monday.