GSK to close Human Genome Sciences acquisition with $2.8-bn revised offer: report

GlaxoSmithKline (GSK) is close to acquiring Human Genome Sciences (HGS) for about $2.8 billion, two months after it went hostile with its $2.59-billion bid for the US biopharmaceutical firm, Reuters today reported, citing sources familiar with the situation.

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 had rejected the offer saying that the buyout proposal did not reflect the value of the company, and hired Goldman Sachs and Credit Suisse to explore strategic alternatives, including a potential sale. (See: GlaxoSmithKline's $2.6-bn bid rejected by Human Genome Sciences)

In May, London-based GSK took its hostile takeover offer directly to HGS shareholders, which prompted HGS to adopt a shareholder rights plan or poison pill to thwart the British drug giant's takeover.

Without alternative bids, shareholders of HGS had been urging the company to enter into a friendly deal with GSK before 16 July – the last closing day of GSK's offer.

Under the new terms of the deal, GSK has raised its offer to $14 a share in cash, according to Reuters and the deal may be announced as early as today  before the US stock market opens.