Glaxo in Hostile Bid for Human Genome Sciences

Wants $2.6 billion bid put to bio-tech company shareholders

May 9, 2012, 2:29 pm EDT | By Christopher Freeburn, InvestorPlace Writer

The battle for Human Genome Sciences (NASDAQ:HGSI) has become aggressive.

Last month, GlaxoSmithKline (NYSE:GSK) made a friendly bid for its long-time research partner, HGS. That offer was rebuffed.

Now, GSK says it wil make a hostile bid for the bio-tech company this week.

The takeover offer values HGS at $13 a share, roughly $2.6 billion, the Los Angeles Times reports. HGS has said that amount undervalues the company.

But GSK doesn’t plan to sweeten the offer. In a statement, the company said HGS has been given a “reasonable amount of time” to solicit other offers and that its shareholders should now decide whether the current offer is worthy.

Shares of HGS slipped slightly to around $14.50 in Wednesday trading, while GSK shares dipped 1% to around $45.60.

Article printed from InvestorPlace Media, http://investorplace.com/2012/05/glaxo-in-hostile-bid-for-human-genome-sciences/.