Human Genome Sciences’ fight to keep GlaxoSmithKline at bay is facing new pressure.
A Human Genome shareholder has filed a suit against the board of directors seeking to have a court block the poison pill the biotechnology company put in place to block Glaxo’s hostile takeover attempt.
Glaxo offered $2.6 billion for Human Genome in April, a deal that Human Genome rejected. Glaxo responded with a tender offer, prompting Human Genome to implement a poison pill two weeks ago that would trigger if Glaxo bought 15% of the company’s outstanding shares.
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On Wednesday morning, GlaxoSmithKline announced that it wasn’t waiting for Human Genome Sciences to engage in its strategic review process and that it will be commencing a tender offer for HGS this week at $13 per share in cash.
With some of the weakest takeover defenses known to man, HGS appears in a real bind. But HGS may be able to use the weakness of those defenses to its advantage.
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