(Corrects paragraph 3 to say 23andMe filed for bankruptcy in March, not April) (Reuters) -The founder of 23andMe, Anne Wojcicki, has asked a U.S. judge to reopen an auction for the genetic testing company, saying she has the support of a Fortune 500 company with a current market capitalization of more than $400 billion. Wojcicki […]
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23andMe founder aims to restart auction with major corporate backing
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(Corrects paragraph 3 to say 23andMe filed for bankruptcy in March, not April)
(Reuters) -The founder of 23andMe, Anne Wojcicki, has asked a U.S. judge to reopen an auction for the genetic testing company, saying she has the support of a Fortune 500 company with a current market capitalization of more than $400 billion.
Wojcicki did not name the Fortune 500 company in court filings.
South San Francisco, California-based 23andMe filed for bankruptcy in March, seeking to sell its business at auction after a decline in consumer demand and a 2023 data breach that exposed sensitive genetic and personal information of millions of customers.
Last month, Regeneron Pharmaceuticals agreed to buy the firm for $256 million, topping a $146 million bid from Wojcicki and TTAM Research Institute, which was founded by Wojcicki and describes itself as a California non-profit public benefit corporation.
In a filing dated May 31, Wojcicki claimed that 23andMe’s debtors had attempted to tilt the sales process away from TTAM and in favor of Regeneron.
TTAM and Wojcicki said in the filing that 23andMe’s financial and legal advisers unfairly capped their maximum bid at $250 million due to misplaced concerns about TTAM’s “financial wherewithal”. The plaintiffs said the auction was prematurely concluded before they had the opportunity to submit a bid that would have exceeded $280 million.
The company’s debtors said the auction results came after an extensive and careful consideration by a four-member special committee of independent directors, according to the filing.
According to another filing, 23andMe is seeking court approval to let Wojcicki and Regeneron submit final proposals by June 12. 23andMe is also seeking a $10 million breakup fee for Regeneron if Wojcicki’s bid is ultimately accepted.
Regeneron said it does not comment on the ongoing proceeding and aims to close the acquisition as intended.
Lawyers for 23andMe’s debtors and TTAM parties did not immediately respond to emails seeking comment.
(Reporting by Urvi Dugar; Editing by Nia Williams)