Switzerland-based pharmaceutical firm Roche has extended its cash tender offer to acquire all outstanding shares in Illumina for a second time.
The hostile approach, which is valued at approximately $5.7bn, will now give shareholders until April 20 to accept an offer of $44.50 per share, an extension on the previous deadline of March 23.
Whilst Roche insist the offer represents a substantial premium over Illumina’s closing stock price before rumours surrounding the bid surfaced, shares in Illumina are currently trading at about 13% above the bid, indicating that stockholders expect a higher price.
The new deadline of April 20 has been established to allow investors in Illumina to oust four directors and replace them with Roche nominees at the company’s annual meeting, scheduled to take place on April 18.
Shareholders have already tendered 144,310 shares in Illumina prior to the expiry of the March 23 deadline, but this still only represents around 0.1% of Illumina’s total outstanding stock.
Illumina has responded strongly to the approach, saying in a statement that "Illumina’s board of directors continues to believe that Roche’s offer is grossly inadequate and that Illumina is positioned to create far more value than Roche has offered."
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Roche’s hostile bid for the company was originally announced in January 2012 after Illumina rebuffed a number of approaches.