"If you can't beat them, join them!" is a proverb often used in politics and war. In this case we use it for a financial strategy chosen by the "commanders" of Roche. Some rumors started to appear in the past weeks, but now Roche comes out with an official bid of (please take a sit) $5.7 billions to acquire Illumina, more precisesly $44.50 per share in cash, an 18 percent premium over Illumina's closing share price of $37.69 yesterday.
Apparenlty Roche started to negotiate silently with Illumina to find a way to reach a deal, but Illumina decided to refuse any kind of offer. Franz Humer, Roche’s chairman, decided, after numerous efforts, to release a public letter to Illumina chief executive and chairman Jay Flatley bemoaning “the lack of any substantive progress in our efforts to negotiate a business combination between Illumina and Roche” and a January 18 letter confirmed a lack of interest by Illumina’s board.