2 page summary of case 14 ROCHE HOLDINGS AG: FUNDING

Please upload it to D2L Assignment folder.

You should write one paragraph about the story of this case.

In your summary, you should answer the following three questions:

1.

What are the business and financing risks associated with the acquisition of

Genentech? Is this a good time to do the deal?

2.

Do you believe the bond issuance will have an impact on Roches bond rating?

3.

What are the prevailing spreads for non-Roche bonds? Do you think these spreads are

similar to investors required yield for the Roche bonds?

4.

What is your specific recommendation for the coupon rate for the Roche 5-year, 10-

year, and 30-year U.S. dollar bonds?

5.

What would your coupon rate recommendation be for the 7-year bond in euro?