Illumina, Inc. (ILMN) Plans Poison Pill to Thwart Roche (RHHBY) Bid
1/26/2012 8:09:22 AM
Illumina Inc. (ILMN) adopted a so-called poison-pill takeover defense after Roche Holding AG (ROG) made a hostile $5.7 billion bid for the maker of gene-mapping equipment. Shareholders will receive one preferred stock purchase right as a dividend for each common share held as of the close of business Feb. 6, San Diego-based Illumina said in a statement today. The rights won’t be exercisable initially, Illumina said. Such a rights agreement can block a hostile bid by making it prohibitively expensive. Should Roche or another bidder become the owner of 15 percent or more of Illumina’s stock, other shareholders will be able to exercise the rights to buy new common stock, diluting the stake of the prospective bidder.