With Stock Sale, Roche to Cut Its Genentech Stake

Genentech Inc., the world’s No. 2 biotechnology company, said Thursday that 17.3 million shares of its common stock are being offered by Roche Holding at $163 each, or about $2.82 billion worth of shares.

After the offering, Roche’s stake in Genentech would be reduced to about 58% from 66%. If an option for underwriters to purchase an additional 1.7 million shares isn’t exercised, Roche’s stake will be about 59%.

Genentech said it won’t receive proceeds from the offering. The closing of the transaction is expected Wednesday.

J.P. Morgan & Co., Goldman, Sachs & Co., Merrill Lynch & Co., Warburg Dillon Read, Lehman Brothers Inc. and Robertson Stephens are managing the stock offering.

South San Francisco-based Genentech fell $6.69 to close at $167.31 on the New York Stock Exchange.

The announcement was made after the close of regular U.S. trading.