GlaxoSmithKline has not waited around for bid target Human Genome Sciences to complete a strategic review and has taken its $2.6bn offer direct to the US group's shareholders.
Glaxo has offered $13 a share for Human Genome, with which it already collaborates on various drugs. But the US group rejected the bid as undervaluing its business, and hired Goldman Sachs and Credit Suisse to explore strategic alternatives. Now Glaxo has said it would not participate in this process, and has launched a tender offer for the business. It said:
Glaxo continues to believe that now is the appropriate time in the evolution of the relationship for the companies to combine. [It] has clearly stated its preference to complete a transaction on a friendly basis in a timely fashion [and] remains willing to meet and review its offer with Human Genome at any time.
Dr Mike Mitchell at Seymour Pierce said:
We noted last month that we believed some sort of deal was likely and, in light of the broader challenges across the industry, we continue to believe it will be difficult for shareholders to ignore the certainty of a cash offer.
Glaxo is down 21.5p at 1402.5p but much of that fall is due to the shares going ex-dividend.
