GSK pushes takeover of Human Genome Sciences aggressively

Drug giant GlaxoSmithKline (GSK) has upped the aggression in its bid to takeover Human Genome Sciences (HGS), a genetics research based pharmaceutical company. HGS's board earlier rejected an offer of USD 13 a share and GSK has now taken the deal straight to shareholders. GSK also refused to attend a strategic alternatives review process, started by HGS with Goldman Sachs and Credit Suisse. GSK's offer values HGS at around USD 2.6 billion, which undervalues HGS according to company representatives. The offer represents an 81 percent premium on the HGS share price when it was made, but is below the current share price ( just under USD 15 per share ). The share price is still low compared to last year's peak, when it was around double the present value.

GSK has released a statement today ( May 9 ) saying the strategic review is unnecessary and that the price offered is fair. The statement also expresses the intention to push ahead with the takeover, even without the support of the HGS board. Human Genome Sciences was founded in 1992 and specializes in using the human DNA sequence to create protein and antibody medicines. Headquartered in Rockville Maryland, the company's share price has fluctuated with the success or failure of clinical trials of medicines. GlaxoSmithKline is one of the world's biggest pharmaceutical companies, headquartered in Britain, it was founded in 2000 after a series of mergers of large pharmaceutical companies with long histories. The company employs nearly 100,000 people world wide.. Liam Lever, liam@romania-insider.com