ROCHE for DNA once a gain

Discussion in 'Stocks' started by nitro, Jan 9, 2009.

  1. nitro


    Roche goes hostile on DNA takeover. I give it 10 delta of shareholders approving a buyout below par, and even par is a joke. Shareholders may approve $105+, or a ~30% premium over today's opening price.
  2. nitro


    Roche really wants DNA. They are willing to suspend a hefty dividend to finance the takeover.

    It all comes down to price. Roche figures there is massive resistance at 100:;ohlcvalues=0;logscale=on;source=undefined

    So they are playing the psychology card on tired shareholders.

    I think the deal is in dollars. I have to think about when Roche would have converted Euros to Dollars to make this deal, almost certainly when the Euro was very strong.
  3. Roche will probably offer around high 90's then sweeten the pot to around the 105+ number.

    They own a chunk of DNA anyway, but they are pretty desperate to improve their line of drugs as their own is dwindling. Both are great companies.
  4. nitro


    Agreed. Shareholder psychology may cave in though at this offer price, as I mentioned above.

    Imo, DNA is on a verge of a breakout of 100 without a deal.
  5. nitro


  6. nitro