GSK goes hostile in HGS takeover
GlaxoSmithKline has taken an offer of 13 dollars a share directly to the shareholders of Human Genome Sciences (HGS).
GlaxoSmithKline has taken an offer of 13 dollars a share directly to the shareholders of Human Genome Sciences (HGS).
In April GSK made an offer to purchase US biopharmaceutical firm HGC, but saw its bid 'rejected without discussion'.
HGS replied that the UK pharmaceuticals giant had made an offer that did not reflect the "value inherent in the company".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
HGS's board then authorised a review of its strategic options which include the sale of the company, with GSK being one of the firms invited to offer itself as a potential buyer.
However, on Wednesday GSK said it would not participate in the review and instead made the offer, which it said represented a premium of 81% to HGS's closing share price of $$7.17 on 18th April, the last trading day before HGS publicly disclosed GSK's private offer.
"GSK continues to believe that now is the appropriate time in the evolution of the GSK/HGS relationship for the companies to combine and that GSK is uniquely positioned to deliver on the promises of Benlysta, albiglutide and darapladib," the firm said.
"GSK values the long relationship it has with HGS and has clearly stated its preference to complete a transaction on a friendly basis in a timely fashion," it added.
"GSK remains willing to meet and review its offer with HGS at any time."
The firm tried to woo HGS' shareholders, saying its offer represented "immediate liquidity at a substantial premium while eliminating further exposure to the significant execution risk inherent in HGS achieving its future growth objectives".
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published