Stocks - World - Finance - Business - Real Estate - Politics - Movies - Music - Sports - Home

Article posted on 5/9/12
Author: Kelly Curtis

GlaxoSmithKline Goes Hostile with Takeover of Human Genome Sciences

GlaxoSmithKline announced this week it is taking its offer to acquire Human Genome Sciences hostile (HGS), extending a $13 per share cash tender directly to HGS shareholders after the company rebuffed the offer as not reflective of the company's value despite representing an 81 percent premium over the share price when the offer was initially made. Glaxo did not say when the offer would officially launch, but a source familiar with its plans said it would be this week, and would remain effective for 20 business days.

Glaxo and HGS have a joint partnership through which they sell Benlysta, a drug used to treat lupus. The joint venture is also in the development phase with a couple of other drugs, which Glaxo would gain full ownership of if its tender offer is accepted. Glaxo's offer for HGS values the company at $2.6 billion, and is reportedly the same offer Glaxo extended privately to HGS management last month.

Glaxo's initial offer was made April 18th, and represented an 81 percent premium to the company's share price at that time, but the share price more than doubled after the bid leaked, and the stock ended Wednesday's session at $14.59 per share, or about 12 percent higher than Glaxo's offer. Glaxo said in a statement on Wednesday that it hopes to complete a deal on friendly terms, and remains open to negotiations with HGS at any time.

Stocks - World - Finance - Business - Real Estate - Politics - Movies - Music
Sports Environment - Lifestyle - Science - Technology - Weather - Poli Sci - Food - Home