FINANCIAL PIONEERING: THE GENENTECH ACQUISITION BY ROCHE Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The case describes the financing of the Genentech acquisition by Roche. The case explores the revolutionary way of lending by Roche at the beginning of 2009, just months following the Lehman Brothers insolvency. With equity market in free fall, and with debt marketplace "shut off", the CFO of Roche administer to fund an acquisition costing more than USD 40 billion, and scores three hits in an issue of weeks: a) the greatest private dilemma of bonds in the US (USD 16.6 billion); b) the biggest private issue of bonds in Continental Europe (Euro 11.25 billion); c) the biggest private problem of bonds in UK (Sterling1.25 billion). The case presents the issues at stake the facts, and the very daring and progressive financiang path selected by the Roche CFO. Learning objectives: The main teaching purpose of the case is its "anti-catastrophe" message.

At one of the worst possible moments of the 2008 financial disaster, an educated CFO (with a small team of gifted folks) decides that he cannot be affected by the external environment, and determines to go ahead to finance a value creating investment chance. The key learnings from this case are: 1) making class participants understand that there are alternate ways to fund great investment opportunities; 2) that although capital structure is very important, the creating value mechanism was the job as opposed to funding; 3) that the financing, nevertheless, was the enabler of value creation prospective of the development.

PUBLICATION DATE: February 10, 2012 PRODUCT #: IMD559-HCB-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE