PropThink: ILMN Getting a Lift From Roche Comments; Take-Out Possibility Remains
(Thomson Reuters ONE) -
By David Moskowitz
We continue to believe that speculation that Roche (OTC:RHHBY) is back
evaluating Illumina (NASDAQ:ILMN) as a take-out, is real, which you can read
about in our prior story here. ILMN shares were off over 6% Monday, as investors
saw the company hire a new head of investor relations, Rebecca Chambers, which
was taken as a sign that ILMN would not be sold in the near term. We think this
is ridiculous, and more importantly, Roche said on its earnings call Tuesday
morning that it plans to continue investing in the gene sequencing segment. Of
course, Roche CEO, Severin Schwan, declined to comment on speculation that the
company might reconsider its bid for ILMN, but the prior run that Roche took at
the company is telling. ILMN CEO Jason Flately has been vocal that a sale of the
company is a possibility. We think that signals here are clear, and a Roche bid
of $60 would not surprise us. Expect investors to take advantage of ILMN's
weakness yesterday, with the stock up in early trading today on the Roche
comments.
Read this article in its original publication by clicking here.
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Datum: 16.10.2012 - 15:51 Uhr
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