US biotechnology company Human Genome Sciences (HGS) today rejected an unsolicited $2.59-billion takeover bid from the UK's largest pharmaceutical firm GlaxoSmithKline (GSK).
Rockville, Maryland-based HGS said that the offer did not reflect the value of the company, but added that it had started to explore its strategic options, including a potential sale.
''The HGS Board of Directors, in consultation with independent financial and legal advisors, has carefully reviewed and considered the GSK offer and has determined that the offer does not reflect the value inherent in HGS,'' the company said in a statement.
''HGS also announced today that its Board of Directors has authorised the exploration of strategic alternatives in the best interests of shareholders, including, but not limited to, a potential sale of the Company,'' it added.
HGS has invited GSK to participate in this process and has requested additional information regarding two drugs that treat heart disease and diabetes, to which HGS has substantial financial rights.
HGS has retained Goldman, Sachs and Credit Suisse to assist in the sale.