Affymetrix Board Recommends Earlier Takeover Deal by Thermo Fisher Scientific Inc Rejecting Origin’s $1.5 Billion Bid

Santa Clara, California based manufacturer of DNA microarrays, Affymetrix Inc. said its board rejected an acquisition offer of $1.5 from Origin Technologies Corp. The board instead recommends an earlier planned merger deal offered by Thermo Fisher Scientific Inc.

On Sunday, in a statement, the DNA-testing company said Origin's cash offer on March 18 of $16.10 per share is inadequate. It said, "Origin appears to be a newly-formed shell entity with no assets of which Affymetrix is aware, and whose sole source of funding for the proposed transaction is $1.5 billion in potential debt commitments." In January, Thermo Fisher agreed to acquire Affymetrix for $14 per share in cash which was greater than fifty percent of its closing price when the offer was still not made public. The new offer from Origin complicates the situation.

Thermo Fisher will get to add Affymetrix's products helping the company to expand its range of laboratory equipments including diagnostic tools used by hospitals.

Marc Casper, Thermo Fisher's CEO said in a letter to the shareholders that the offer made by Origin relies on "a vague and insufficient financing package from a Chinese firm." It might also be blocked by regulators.