Reference no: EM131270076
Case - Roche's Acquisition of Genentech
Questions:
In preparing the case, 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 of June 2008, what is the value of the 'synergies' Roche anticipates from a merger with Genentech? Assess these per share of Genentech using a 9% weighted average cost of capital in your analysis.
3. Based on DCF valuation techniques, what range of values is reasonable for Genentech as a stand-alone company in June 2008? Exclude synergies from your analysis and use a 9% weighted average cost of capital. Be sure to include approximately $7 billion in net cash on the balance sheet (net of debt outstanding) in your valuation. Exhibit 10 is a good starting point for your analysis.
4. What does the value of comparable companies (Exhibits 12, 13, and 14) indicate about Genentech's value within the range established in question 3?
5. How has the financial crisis affected Genentech's value? What changes in valuation assumptions occurred between June 2008 and January 2009?
6. What should Franz Humer do? Specifically, should he launch a tender offer for Genentech's shares? What are the risks of this move? What price should he offer and should he be prepared to go higher? How much new financing will Roche need to complete the tender offer?
Attachment:- Assignment.rar
Create your own unique while-end repetition structure
: Create your own unique While-End repetition structure. You decide the theme. You should provide both the pseudocode and the flowchart of your example.
|
Critical to an organization overall strategic plan
: Identify a key area where the human resource department is critical to an organization's overall strategic plan. Discuss how HR impacts that area. Discuss where an organization can see positive/negative results from HR's involvement in that area.
|
When does a corporation need a board of directors
: Why has strategic management become so important to today’s corporations? Why are strategic decisions different from other kinds of decisions? When does a corporation need a board of directors?
|
Corporate culture of euron contribute to its bankruptcy
: How did the Corporate Culture of Euron Contribute to its bankruptcy? Did Enron's bankers, auditors, and attorneys contribute to Euron's demise? if so how?
|
How has the financial crisis affected genentech value
: How has the financial crisis affected Genentech's value? What changes in valuation assumptions occurred between June 2008 and January 2009
|
Interpretations around their argument
: Do you think it is ethical for researchers to have a particular trend they want to predict, and so build their research and interpretations around their argument?
|
Principles of economic-price elasticity of demand
: One common good that consumers see elasticity in prices is gas. In looking at gas, we see it is a good that many people use. Do you find the increase in the cost of gas will increase the cost of other goods? answer and give and example.
|
Explosion of social media and consumer quest for interaction
: With the explosion of social media and the consumer quest for interaction, sponsorship in the sports business landscape has changed. Rather than traditional event signage, print ads, and commercials, today's consumers want interactivity and experienc..
|
Fine print on your credit card contracts
: Disclosures are usually in the fine print that Will mentioned. Have (do) you read the "fine print" on your credit card contracts? Or your car loan? Or your student loans? Or your mortgage? If not, why not? If you haven’t, do so now. Have you ever (or..
|