Bloomberg News

Illumina Rises the Most Since January 2010 on Takeover Talk

December 06, 2011

(Updates with closing share price in second paragraph.)

Dec. 5 (Bloomberg) -- Illumina Inc., a maker of tools for genetic analysis, gained the most in a month after a report raised the possibility the company may be a takeover target.

Illumina, based in San Diego, increased 6 percent to $29.44 at the close in New York, the largest single-day jump since Nov. 4. The shares have declined 54 percent this year. The report said the sources of the takeover speculation were “iffy at best.”

“When stocks are beaten up like Illumina has been, you often get this chatter,” said Les Funtleyder, a health-care strategist and portfolio manager at Miller Tabak & Co. in New York. The company owns shares of Illumina. “It seems a bit unlikely because there’s a lot of uncertainty.”

Companies such as General Electric Co. and Samsung Electronics Co. have said they want to bolster their genetic analysis assets, something that Illumina could provide, Funtleyder said in an interview today.

Munich-based Siemens AG, which partnered with Illumina last month to work on new genome sequencing devices, wouldn’t be a likely bidder, Tycho Peterson, an analyst with JPMorgan Chase & Co., said today in an interview.

“We met with Siemens last week, our view is that this is unlikely,” Peterson said. “I don’t think they want to sell here.”

Laura Trotter, a spokeswoman for Illumina, declined to comment on the report.

In October, the company announced a $15 million to $17 million restructuring plan because of concerns that government and academic institutions may reduce research funding, as well as uncertainty about the global economic environment. Illumina has made six acquisitions in the past five years, including the 2006 purchase of Solexa for $482 million.

--Editors: Andrew Pollack, Bruce Rule

To contact the reporter on this story: Ryan Flinn in San Francisco at

To contact the editor responsible for this story: Reg Gale at

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