GSK, a big pharma company on Wednesday, May 23, tweaked the terms of its hostile $2.59 billion offer for Human Genome Sciences Inc. to address a poison pill mechanism its target put in place last week.
Human Genome's plan, implemented as it reiterated its rejection of the offer on May 17, dilutes holdings should a third party attempt to buy up 15% or more of its stock without the board's support.
The big pharma company, GlaxoSmithKline said it has added a condition to its offer "requiring HGS to redeem the pill or, alternatively, GSK being satisfied in its reasonable judgment that the pill has been invalidated or is otherwise inapplicable to GSK's acquisition of HGS."
Human Genome, of Rockville, Md., rejected the London company's initially friendly, $13 per-share offer in April, instead hiring Credit Suisse Group and Goldman, Sachs & Co. to conduct a formal sales process.
GlaxoSmithKline, which has been a partner of Human Genome since 1993, declined to participate, and on May 9 took its offer directly to shareholders.
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