Glaxo extends HGS offer

Pharmaceuticals leviathan GlaxoSmithkline has extended the offer period for its hostile take-over of US sector peer Human Genome Sciences (HGS).

The offer period had been set to run out at the end of June 7th, but has now been extended to 17:00 (New York City time) on Friday, June 29th.

Glaxo launched a $13 a share offer for HGS after attempts at an agreed takeover were "rejected without discussion".

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The two companies have long worked together and Glaxo's official line is that now is the appropriate time in the evolution of the relationship for the companies to combine.

The extension of the offer period and the fact that HGS continues to trade a little above the Glaxo offer price suggests that HGS shareholders are not convinced by Glaxo's argument.

JH