Novartis takes £1.9bn stake in Roche

Novartis, the Swiss pharmaceutical giant, has bought 20% of the voting shares in Roche for about 4.8bn Swiss francs (£1.94bn).

"We hope that over time we'll be able to explore areas of collaboration as Roche has good long-term prospects," said Novartis Chief Executive Daniel Vasella.

Novartis, however, has yet to discuss with Roche management about any collaboration, Vasella said.

Novartis bought the stake - 32 million bearer shares of Roche Holding - from the Swiss-based investment house BZ Gruppe Holding.

"This is a long-term financial investment, which is also strategic in nature," said Vasella.

Novartis purchased the shares at 151 francs (£60.47) a share, a premium of about 5% over Friday's close at 143.75 francs (£57.83).

Roche issued a statement saying the current majority holding - 50.1% of bearer shares owned by the Hoffman and Oeri-Hoffman families - was unaffected.

"Roche will continue its established strategic and operational direction," the company said. "Roche wants to grow organically and will, as before, additionally consider in-licensing opportunities, strategic alliances and acquisitions."