Ventana warming to Roche deal?
This article was originally published in The Gray Sheet
Tissue-based cancer test firm Ventana Medical Systems enters into a confidentiality agreement with Roche, allowing the latter firm to begin a due diligence review with an eye toward potentially acquiring Ventana, the firms announce Nov. 13. However, Ventana still believes Roche's current hostile offer of $3 billion ($75 per share) is "grossly inadequate." Roche initiated the offer in June and renewed it for the fourth time last month (1"The Gray Sheet" Nov. 5, 2007, p. 18). Ventana believes that the due diligence and "related discussions" will allow Roche to recognize the "significant additional value inherent in Ventana's business," potentially resulting in a richer offer. However, the likelihood of a deal remains uncertain, both firms say. Ventana stock closed at $90.08 on Nov. 16
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