Genentech To Pay $371 Million For Retention Plan

Employee retention plan announced along with Genentech's rejection of Roche's buyout offer will cost the biotechnology giant about $371 million.

SOUTH SAN FRANCISCO, Calif. (AP) -- A Genentech employee retention plan announced along with its rejection of Roche's buyout offer will cost the biotechnology giant about $371 million, according to documents filed Thursday with the Securities and Exchange Commission.

According to the filing, the plan put in place to reassure employees concerned about the takeover bid will cost the South San Francisco company about 22 cents per share between 2008 and 2010.

The plan replaces the company's 2008 stock option program, which would have incurred similar costs.

Genentech Inc. last week rejected Roche Holding AG's offer to buy the remaining 44 percent of Genentech shares the Swiss pharmaceutical maker doesn't already own.

A Genentech special committee told Roche that $89-per-share offer undervalued the company.

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