GlaxoSmithKline said Friday morning it has extended its tender offer to buy all of the outstanding shares of Human Genome Sciences for $13.00 per share to June 29.
The original offer expired at midnight Eastern time Thursday night, June 7.
GSK's efforts to buy Human Genome Sciences, which is based in Rockville, Md., emerged publicly in April with a friendly offer to HGS management.
HGS said no thanks and the friendliness has fallen by the wayside.
By now, GSK is working toward taking over the company and dismissing the HGS management and board of directors.
HGS complains that the offer is not lucrative enough, but GSK notes that it is an 81 percent premium over the share price of $7.17 on April 18, when the offer was made public.
HGS management and board put in a poison pill and talked about getting other bidders involved.
So far, none have emerged publicly.
The impediment for other bidders is that GSK already has partnership with HGS on its most promising products, so another bidder would only get HGS' share of those products' potential profits, while incurring part of the costs.
"GSK continues to believe its offer represents full and fair value and is in the best interests of both companies' shareholders," GSK said in a statement. "It is well aligned to GSK's long-term strategy of delivering sustainable growth, simplifying GSK's business model, enhancing R&D returns, and deploying capital with discipline.
"For HGS shareholders, it provides immediate liquidity at a substantial premium while eliminating further exposure to the significant execution risk inherent in HGS achieving its future growth objectives. GSK's offer reflects the value of Benlysta, darapladib, albiglutide, HGS's operating and financial assets, and expected cost synergies of at least $200 million."
GSK is based in London, but has operations in Philadelphia and its suburbs.