Roche, a Switzerland-based healthcare giant has had its eye on the San Diego-based company Illumina. The California company has been one of the market leaders in manufacturing DNA sequencing tools, something that Roche had hoped to control through a hostile takeover bid.

Stockholders of the San Diego-based company decided to enforce their shareholder rights and rejected the $51 per share bid that Roche then let expire at 6 p.m. Eastern time on Friday, April 20.

“We are pleased that Roche has decided not to extend its inadequate offer to acquire Illumina and that we can now return our full focus to growing our business, making the most of the expanding opportunities in our space, and delivering superior results for our customers and stockholders,” said the Illumina CEO.

The shareholder dispute began at the beginning of the year after a proposed bid of approximately $44.50 per share but was later increased to the $51 after receiving a less than lukewarm response. Roche had argued that Illumina’s success required the assistance of the larger corporation. Illumina shareholders and representatives felt that the original bid and subsequent bid were simply an advantageous takeover of a company suffering from a momentarily depressed stock price due to governmental budget cuts that affected consumer confidence.

Whether it is the decision to sell or how management is handling the day to day operations, these decisions can affect the company profit. Shareholders not only own company stock, but the value of that stock is directly based on these major decisions. The shareholders have the right to protect their interests and at times this enforcement requires the assistance of an experienced and independent attorney.

Source: Xconomy, “Illumina Stays Independent, Roche Walking Away,” Luke Timmerman, April 18, 2012