Human Genome Again Rejects GlaxoSmithKline’s $2.6B Takeover Offer

By FOXBusiness

GlaxoSmithKline (NYSE:GSK) again extended on Friday its $2.6 billion offer to buy long-time partner Human Genome Sciences (NASDAQ:HGSI).

And for the second time, Human Genome rejected the offer.

Continue Reading Below

The deal’s closing date has been extended until July 20, but GSK’s offer stands at $13 a share.

The hostile standoff between the long-time partners has been ongoing since April, when GSK offered to buy Human Genome at what was an 81% premium.

Human Genome rejected the offer earlier this month, calling it inadequate, and then invited GSK to come back with another, higher bid, an idea which U.K.-based GSK rejected. The British company has also declined participation in the auction process being run by Human Genome's advisors, Goldman Sachs (NYSE:GS) and Credit Suisse (NYSE:CS).

“Although HGS continues to welcome GSK's participation, GSK has twice declined to enter the process,” Human Genome said in a statement. “We are committed to completing our exploration of strategic alternatives as expeditiously as possible and in a manner that ensures that HGS stockholders have the benefit of a complete and fair process.”

Taking control of Human Genome would give GSK the full rights to its massive pipeline, including drugs the two have developed together.

GSK said it remained willing to talk to its partner and that extending the closing date would give Human Genome’s shareholders time to consider their options. GSK said it can make no assurance that the tender offer will be further extended following the deadline.

Meanwhile, Rockville, Md.-based Human Genome has said that other companies have contacted it in reference to a deal, however no other bidders have publicly surfaced to challenge GSK.

Human Genome says it will continue to explore strategic options and stands by its date of July 16 for the submission of proposals to buy the company.