LONDON (dpa-AFX) - GlaxoSmithKline plc (GSK, GSK.L) Thursday reiterated that its $13.00 per share offer to acquire Human Genome Sciences (HGSI) represents 'full and fair value' and is in the best interests of shareholders. The drug maker also said it will continue with its tender offer to acquire the company.
The British company in April made a $2.6 billion private unsolicited offer to acquire Human Genome Sciences which was spurned, prompting GlaxoSmithKline to start an unsolicited tender offer this month.
Locking horns, Human Genome Sciences earlier adopted a shareholder rights plan, or poison pill, to thwart a hostile takeover. The company's board termed the GlaxoSmithKline offer inadequate as it fails to include the potential value of its assets and pipeline.
GlaxoSmithKline meanwhile said it will continue to proceed with its tender offer, although prefers to complete a transaction on a friendly basis. The tender offer will close on June 7.
GlaxoSmithKline said its $13.00 per share offer represents a premium of 81 percent to Human Genome Sciences' closing share price of $7.17 on April 18 - the last trading day before Human Genome Sciences publicly disclosed the offer.
The company said its offer provides Human Genome Sciences shareholders immediate liquidity at a hefty premium while eliminating risks the company may face while trying to meet its future goals.
GlaxoSmithKline said its offer incorporates the value of Benlysta, darapladib, albiglutide and Human Genome Sciences' pipeline and financial assets, and also reflects expected cost synergies of at least $200 million.
GlaxoSmithKline and Human Genome Sciences have long been partners and had jointly developed the lupus drug Benlysta that was approved by the FDA in 2011. It is the first lupus medication to be approved in more than 50 years.
Both companies are also involved in the development of two more drugs for heart disease and diabetes, which have a potential to generate big money.
GSK is trading on the NYSE at $44.53, down $0.84 or 1.85%, on a volume of 1.7 million shares.
GSK.L closed at 1,409.00 pence, down 12.50p or 0.88%, on a volume of 7.4 million shares on the LSE.
HGSI is trading at $14.09, down $0.16 or 1.12%, on a volume of 4 million shares.
Copyright RTT News/dpa-AFX
© 2012 AFX News
