GlaxoSmithKline (NYSE: GSK) has extended its $2.6 billion takeover offer for Human Genome Sciences (NASDAQ: HGSI) until the end of this month. The original tender period expired on June 7. GKS has now extended the tender period to June 29.
GSK said that the tender will now expire at 5 PM EST on June 29. The offer price remains unchanged at $13 per share.
GlaxoSmithKline has extended the offer even as it continues to battle Human Genome Sciences’ reluctant management. When the initial tender period expired on June, GSK had secured less than 1% of HGSI shares.
UK-based GlaxoSmithKline has already began a process to replace the entire Human Genome board with its nominees, according to Reuters. The company is trying to bring in executives from the drug industry as well as finance and government experts, who could be nominated as independent directors of HGSI’s 12-member board.
Reuters, citing people familiar with the matter, said that on May 30, GSK intended to get approval from Human Genome shareholders to replace the existing board under a “consent solicitation” process.
Meanwhile, Human Genome Sciences continues to rebuff GlaxoSmithKline’s offer as it sees the offer as inadequate. HGSI has initiated an auction process and invited GSK to participate. At the same time, the company is adopting a “poison pill” shareholder rights plan in order to thwart the hostile takeover attempt.
HGSI said on Friday that the process continues to be active and fully underway. However, no counterbidder to the GSK offer has emerged so far.
HGSI and GSK currently sell Benlysta together. The two companies also collaborate on couple of experimental drugs, which could become significant sellers.
The acquisition of HGSI would give GSK full rights to the partnered drugs, and hence GSK has been pursuing HGSI.
HGSI shares finished at $13.32 on Friday, slightly above GSK’s offer price of $13 per share.
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