US biopharmaceutical firm Human Genome Sciences (NASDAQ:HGSI), or HGS, reiterated its advice to shareholders not to tender their stock to the $13.00 (EUR10.30) a share hostile takeover offer from GlaxoSmithKline Plc (LON:GSK), after the British suitor announced an extension to 20 July of its $2.6bn worth bid.
HGS’ board said that less than 1% of the company shares had been tendered to GSK’s offer which was taken to HGS shareholders in May, after the target’s board turned it down as inadequate and not reflecting the firm’s inherent value.
GSK, whose bid was to expire on 29 June, said on Friday it had decided to extend it beyond the 16 July deadline set by HGS for final offers to be submitted as part of its strategic review, in a move to allow HGS shareholders the opportunity to compare the results of the board’s review to the hostile offer.
Reacting to that, HGS said it planned to complete its strategic review as rapidly as possible in a way that would give shareholders the chance to benefit from a complete and fair process.
The US company has invited GSK twice to take part in the review, but the British drugmaker declined both invitations, saying that its offer was not subject to due diligence or financing.
GSK is still willing to meet with HGS and review its takeover proposal at any time, it added.
The transaction offers immediate premium liquidity to HSG’ investors, while sparing them the inevitable high risk involved in HSG pursuing its future growth objectives, the buyer has explained.
It is also in line with GSK’s long-term growth strategy and would help it simplify its business model.
Goldman, Sachs & Co, Credit Suisse Securities (USA) LLC, Skadden, Arps, Slate, Meagher & Flom LLP and DLA Piper LLP (US) are serving as advisors to HGS.