Illumina adopts takeover defense to ward off Roche

[January 26, 2012]  SAN DIEGO (AP) -- Diagnostics company Illumina Inc. says it is adopting a "poison pill" takeover defense in the wake of an unsolicited buyout effort by Swiss drugmaker Roche Holding AG.

On Wednesday, Roche said it was planning a $5.7 billion tender offer for Illumina. The bid of $44.50 per share was an 18 percent premium over Illumina's closing stock price on Tuesday. It sent Illumina's share price soaring above the offered price.

San Diego-based Illumina urged stockholders not to take action until it reviewed the proposal and made a recommendation.

Roche, which specializes in cancer diagnosis and diabetes management, has a history of success with hostile offers. It eventually acquired U.S. cancer drug maker Genentech in 2009 by forcing buyout talks with such an approach.

Illumina makes systems that analyze an individual's DNA.

[Associated Press]

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