link to case : https://1drv.ms/b/s!AloL8CwjfeUZjT5Cfpwgzw3t8Gng?e=KrYA0Q

questions :

In preparing the case, you can assume that Genentech has 1,052 million shares outstanding.

1. Why is Roche seeking to acquire the 44% of Genentech it does not own? From Roche's point of view, what are the advantages of owning 100% of Genentech? What are the risks?

2. As a majority shareholder of Genentech, what responsibilities does Roche have to the minority shareholders

3. As of June 2008, what is the value of the synergies Roche anticipates from a merger with Genentech? Assess the value of synergies per share of Genentech. Please use a 9% asset-level cost of capital in your analysis.

4. Based on DCF valuation techniques, what range of values is reasonable for Genentech as a standalone company in June 2008? Please exclude synergies from your valuation and use a 9% asset-level cost of capital. You can assume that as of the end of June 2008, Genentech held approximately $7 billion in cash, which included investments and securities that were not needed in its daily operations. (Note: Exhibit 10 is a good starting point for this analysis.)

5. Given the initial rebuff from Genentech's board and management, what should Franz Humer do? Specifically, should he launch a tender offer to Genentech's shares? What are the risks of this move? What price should he offer? Should he be prepared to go higher? How much new financing will Roche need to complete the tender offer?

Answer rating: 100% (QA)

Answer 1 Roche is seeking to acquire the 44 of Genentech it does not own to gain full control over the company and integrate its operations more close... View the full answer