Genentech shares rose more than 2 percent Friday after a published report said Swiss drugmaker Roche was preparing to sweeten its offer to buy the portion of the U.S. biotechnology giant it does not already own.

Marcio Jose Sanchez / AP The Genentech campus is seen in South San Francisco, California.

The Financial Times' Alphaville web site said Roche was preparing to offer about $95 per share, likely ahead of its release of its year-end financial report in early February.

The Genentech board rejected an $89 per share offer made in July, after which its shares rose well beyond that to around $99 before sliding back as the recession took hold.

Roche, which sells Genentech's medicines in Europe, already owns 56 percent of the biotech company. It declined to comment on the FT report.

"FT put out something today about a $95 bid. That's exactly why the stock is up," said Jason Kantor, an analyst for RBC Capital Markets.

Roche is prepared to scrap its own year-end dividend to help fund the deal, the FT report said, adding that the company would need between $30 billion and $35 billion from the debt markets.

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"Genentech stock and its call options have seen a pickup in activity as there is speculation that Roche Holdings has secured more financing, which would allow them to increase their bid for Genentech," said William Lefkowitz, options strategist at brokerage firm vFinance Investments.

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[DNA  Loading...      ()   ] finished Friday up 2.3 percent at $86.34 on Nasdaq, while the American Stock Exchange Biotech Index was off 1.7 percent.

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