US maker of gene-mapping tools, Illumina Inc. (ILMN) has been targeted for a takeover by Roche Holding AG (ROG), and shareholders are eager to play their hand. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)
Illumina's share price rose above the big price, indicating investors are betting an even higher offer will come, reports Bloomberg. Illumina currently trades at $52.06, above the newest offer price of $51 a share Roche's shares have fell 1.75% on Thursday.
Illumina shareholders believes Roche will quickly fold and raise the bid price higher, and feel confident they are in a good position to ask for it. After all, there are few other bidders for Illumina so they can afford to hold out until Roche comes back with a better offer.
"As long as their stock is trading higher than Roche's offer, they don't have to do anything," said Dan Leonard, an analyst with Leerink Swann & Co. to Bloomberg.
Well played, Illumina, well played.
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So, how will this tug-of-war over bid price end?
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Written by Rebecca Lipman