HGS Again Rejects GSK Extension of Tender Offer
GlaxoSmithKline just will not give up. The company announced today an extension of its tender offer for Human Genome Sciences, and again the smaller biotech company rejected GSK's offer.
Earlier this morning, GlaxoSmithKline plc (NYSE: GSK) announced it extended its tender offer to acquire all of the outstanding shares of Human Genome Sciences (NASDAQ: HGSI) for $13.00 per share in cash to 5:00 p.m. New York City time on Friday, 29 June 2012.
The HGS Board of Directors responded, not too long after, rejecting GSK's unsolicited $13.00 per share tender offer after determining, in consultation with financial and legal advisors, that the GSK offer price is inadequate and does not reflect the value inherent in HGS.
As previously announced, Human Genome Sciences has authorized the exploration of strategic alternatives in the best interests of stockholders, including a potential sale of the Company.
Human Genome Sciences states this process continues to be active and fully underway. GSK declined to enter the process and, through its unsolicited tender offer, seeks to circumvent, disrupt and prematurely end the Company's process to the disadvantage of HGS stockholders.
Human Genome Sciences is committed to completing the exploration of strategic alternatives as expeditiously as possible, and the HGS Board of Directors recommends that HGS stockholders reject GSK's tender offer and not tender any of their shares to GSK.
Currently, shares of Human Genome Sciences are trading up about 2% at $13.47 per share.
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