Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Case study assignment objective: The case study assignment is designed to have students to present the purpose of merger and acquisitions, and valuation of M&A.

image text in transcribed

Case study assignment objective: The case study assignment is designed to have students to present the purpose of merger and acquisitions, and valuation of M&A. i thing you have this case study or i will send you and my i need to answer this question, 1.Should Franz Humer launch a tender offer for Genentech's shares? Explain the risks and the price should he offer. How much new financing will Roche need to complete the tender offer?

image text in transcribed
(- C (Dlearning_uum.eu.myfpiugin|e.php,"2811SJnIudJesouILefLUnlenlfLMA%ZGGenenlech.de l c' g E 9-2104040 l||" \gl'l'illll 2'. Nu (mum. v. sauna-m 30 IE cu: lrullkl DEHAJN Roche's Acquisition of Genentech hole on Ihne- winh'y aernoon of January 2'3, 2009. Fran: Hum-r, chairman of Roche. lurked on: on mwmdmmqu-mnmmwaMImm-m stintedl subsidiary in Caliiamia. Rnchc'a ulie-r to acquire the renaming 44% of thmtrch'a slack Ilm Roche didmtow'n hadbamu'penfmsix monmw'i'lje Wesstnuu'axdadeai Huang! wonderedil'rl: made sense In makea lam-er offer Ear the sham Sina- '1990. Roche. a global phnnnnceulical my headquammd inSwiIze-rhnd. had owned a majmily slabs in GammaSh. a 5min] PM in Barthel-Dy. Although technically a subsidiary of Rome, San Francisco-based (hunch mun-d with a grant deal a] latitude- and had a mcly independzm'cultum. Manyinthe indusiqrewndthemxwlmlasnmdlemnst suctessful pIIiJIEI'ShiPS l.'|l'l.'l'. Cm Monday, July 2'], 20M, in a "prise m. Ruth: had publicly afntd to pay 589 per sham: in ashluratlEshajEnICenzmedlildldmlnmEnymThisaureplesentedan plemium wt'r ll: prl'viuus Friday's c109: and valued Gcnlmtncll all nppmdnmltly $100 billion. (Exhibit 1 Pusan! a time "IE ofmajmevam.) Tn PW! Genentel's minmiry sharehidern, Genemec'n's build of dim-ora delegaltd mpunaibitynappaiaingwacrmnsptalmlinc mdcupaffnrrmhedl'sntc Wependenl dis-aunts. The ccmmhlev: quickly Iejecwd Rmhe's offer as 'inadmuabe,' but then waited until Nomlhcr to yet far-ward ils crw'n vim of Cnmnlndi'a value: 51.12 to 5115 par silan'. Meanwhile, lhe glow nancial 530mm awe-ed a period offseuw (risk. and th- sliale prices of maul mmpanil'indudjngiumtedland Roche] dedirudsigrufkanycivalmse evenlsand ilsown valuation 1! Mil. Roche's managml beam believed the special mnilvee'a valuation was 1 MAGenentechpdf A E." induulphp " bi indemphp A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Authors: Frederic S. Mishkin, Stanley G. Eakins

8th edition

013342362X, 978-0133423624

More Books

Students also viewed these Finance questions

Question

mple 10. Determine d dx S 0 t dt.

Answered: 1 week ago