Genentech, Roche Near Deal: Report

Genentech is close to a $95-per-share takeover by Roche, according to a report.
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Updated from 4:02 p.m. EDTGenentech (DNA) is preparing to agree to a $95-per-share takeover by Roche, according to a report.

After months of haggling, Roche is closing in on a hostile bid to acquire biotech firm Genentech, according to

The Wall Street Journal

.

Friday, Roche

raised its previous offer

of $86.50 per share to $93 per share after persistent protests from Genentech that that price severely undercut its value. The move would give Roche, which has its eye on the cancer drug Avastin, the 44% of Genentech shares it doesn't already own.

According to the

Journal

, the two companies could announce a deal, which would amount to more than $46 billion in equity value, after the market closes Monday. It would be the second such announcment today, following

Merck

's

(MRK) - Get Report

$41.1 billion acquisition of

Schering-Plough

(SGP)

.

Roche's original offer, in July, was $89 per share. Genentech posed a counteroffer of $112:

"Genentech's strong projected financial performance implies a valuation substantially in excess of Roche's offer price," said Charles Sanders, chairman of Genentech's special board committee, in a statement in February.

As TheStreet.com's Adam Feuerstein

noted

Monday, Big Pharma is primed for M&A activity -- witness the Merck-Schering-Plough deal as well as the deal between

Pfizer

(PFE) - Get Report

and

Wyeth

(WYE)

earlier this year -- but Big Pharma-biotech matchups like the potential Genentech deal may be less likely to materialize than conventional wisdom dictates.

Genentech's stock closed Monday trading up 2% to $92.63.