Roche may say it's committed to pushing its $43.7 billion bid for full Genentech ownership, but that doesn't mean credit markets are committed, too. In fact, as credit flows continue their molasses-like pace, some industry observers are skeptical that Roche can get the kind of financing it needs to wrap up the deal.
The size of the loan Roche has been seeking--$45 billion, according to sources close to the deal, the New York Times reports, crediting Reuters--may simply be out of reach in today's market. So Roche may have to throw everything but the kitchen sink at this deal, including equity, cash and bonds.
That's not to say that the Roche-Genentech deal is dead. It just means that Roche can't rely on banks for backing. And in this climate, that says more about the banks than it does about Roche... or Genentech, for that matter.