Roche Holding AG (RHHBY) Chief Executive Severin Schwan reiterated his confidence in acquiring the 44% of Genentech Inc. (DNA) that it doesn't already own.

In an interview Friday in New York, Schwan explained that the Swiss drug maker's two-decade relationship with the South San Francisco biotech giant makes the deal naturally complimentary. He expressed frustration in negotiating with the independent board of Genentech on an agreed price and stressed his belief that financing for the deal will be available despite the tough credit markets.

"We are very confident that we can get financing in place as soon as we need," said the 41-year old Schwan, who took the helm at Roche last March.

"It will be a mixture of various tools such as bonds, cash on hand, commercial paper, bank financing, and we would approach first the bond markets," he said.

Schwan declined to comment on where such offerings would occur, or whether it was actively building a bank syndicate for such plans. More details on the tender offer will come to light next week when the company files it with the Securities and Exhange Commission.

Schwan wouldn't comment on whether it has hedged its foreign exchange exposure for the deal - as the dollar has strengthened against the Swiss franc since the July offer.

Genentech shares recently rose 27 cents to $82.67, below Roche's current offer of $86.50. The stock hasn't traded above the original July offer of $89 a share since September amid doubts that Roche could finance the deal. American depositary shares of Roche dropped 15 cents to $30.90.

In August, a Genentech independent board rejected Roche's original offer. Last week, after months of failed negotiations, Roche brought the issue to shareholders with a lower tender offer price.

Schwan scoffed at the perception that Roche has turned "hostile" in using a tender offer to takeover Genentech.

"Not at all. What has happened is that we didn't agree in a negotiatied transaction with the special commmitee of the board. We have different views on the value, and that is the very reason why we believe it is now the right time to go directly to the shareholders."

He reiterated that the current tender offer is "fair" and expressed frustration that the two companies couldn't come to an agreed price, especially because the world economy and financial markets have significantly deteriorated since the July offer.

"We are disappointed," Schwan said. "A couple of months ago, I would have been much more optimistic. I would have said that we should be able to reach a negotiated agreement."

"Certainly with the turmoil in the financial markets, and how the environment has changed, we would have thought even more so that we would be able to agree," Schwan said. "Unfortunately, this wasn't the case."

He stressed that the shift in strategy doesn't change Roche's plans for the integraton when it eventually closes the deal. Roche continues to target $750 million to $850 million in annual savings from buying Genentech.

Schwan, along with William Burns, chief executive of the pharmaceutical division, explained that there won't be major job cuts at Genentech, though there will be some elimination of redundant "back office" operations. As the integration continues, Roche will continue to evaluate where more efficency can be gain from the deal.

Furthermore, he said Roche as a whole isn't planning any major job cuts to increase its effiency, unlike many other pharmaceutical companies that have been announcing major layoffs, including Pfizer Inc. (PFE), GlaxoSmithKline Plc (GSK) and AstraZeneca Plc. (AZN).

-Thomas Gryta; Dow Jones Newswires; 201-938-2053; thomas.gryta@dowjones.com