GlaxoSmithKline goes hostile with its $2.59-bn bid for Human Genome Sciences

GlaxoSmithKline (GSK) has taken its $2.59-billion takeover offer directly to the shareholders of Human Genome Sciences (HGS) after the board of the US biopharmaceutical firm rejected its offer without discussion.

In April, GSK had offered $13 a share, a premium of 81 per cent to HGS's closing share price of $$7.17 on 18 April, the last trading day before HGS publicly disclosed GSK's private offer.

Rockville, Maryland-based HGS said that GSK's offer did not reflect the value of the company, but added that it had hired Goldman Sachs and Credit Suisse to explore strategic alternatives, including a potential sale.

HGS also invited GSK to participate in this process, but the London-based company today said it would not participate in the review because it wants HGS shareholders to know that it is committed to proceeding with the offer.

GSK made its offer on 11 April and given HGS 20 business days to complete its review of alternatives, GSK said.
 
GSK, Britain's biggest drugmaker already has an ongoing partnership with HGS. It had paid $125 million in 1993 for a research partnership with HGS and the outcome was collaboration on three drugs.

Both companies late last year developed the first new drug for lupus, Benlysta, which has disappointed investors of HSG.