ROCKVILLE, Md. — One month after GlaxoSmithKline announced its tender offer to acquire Human Genome Sciences, HGS said Friday that its board of directors has rejected the unsolicited bid.
As previously reported, GSK in May said it commenced its previously announced tender offer to acquire all of the outstanding shares of Human Genome Sciences for $13 per share in cash, a premium of 81% to HGS's closing share price of $7.17 per share on April 18, the last trading day before HGS publicly disclosed GSK's private offer. Since then, HGS had said the unsolicited offer was inadequate; however, the waiting period the Hart-Scott-Rodino Antitrust Improvement Act of 1976 had expired Friday, giving GSK the green light to acquire the drug maker.
"The HGS board of directors has rejected GSK's unsolicited $13 per share offer, after concluding unanimously that the GSK offer is inadequate, does not reflect the value inherent in HGS and is not in the best interests of our stockholders," HGS said in a release. "We announced on April 19 that our board has authorized the exploration of strategic alternatives in the best interests of stockholders, including a potential sale of the Company. This process continues to be active and fully underway. We invited GSK to participate in this process, but GSK declined and instead commenced its unsolicited tender offer, which seeks to circumvent, disrupt and prematurely end our strategic review process to the disadvantage of HGS stockholders. We are committed to completing this process as expeditiously as possible. The HGS Board of Directors recommends that HGS stockholders reject GSK’s tender offer and not tender any of their shares to GSK."