LOS ANGELES, Aug. 13 (Xinhua) -- Genentech rejected on Wednesday a 44-billion-dollar bid by Roche of Switzerland to take complete control of the San Francisco-based biotechnology company.
Genentech board members recommended against the buyout bid at a meeting Wednesday morning, the company said in a statement.
After reviewing the bid, Genentech's committee of board members not employed by Roche concluded that the takeover bid "substantially undervalues the company," said the statement.
"However, the special committee would consider a proposal that recognizes the value of the company and reflects the significant benefits that would accrue to Roche as a result of full ownership," the statement added.
Roche, the Basel-based drug giant, had offered to buy on July 21 all of Genentech's remaining stock for 89 dollars a share, or about 44 billion dollars.
Roche already owns 56 percent of Genentech, the world biggest biotech company in terms of stock value and second biggest in revenue to Amgen of Thousand Oaks, also a U.S. company.
Apparently hoping to maintain good relations with its majority owner, the statement also quoted Genentech board member, Dr. Charles Sanders, as saying the company looks forward to "maintaining its successful relationship with Roche, regardless of ownership structure."
