GSK Clinches $3 Billion Takeover of Human Genome Sciences

After increasing its bid to $3.0 billion British drugmaker GlaxoSmithKline (IW1000/88) on Monday clinched a takeover of US research partner Human Genome Sciences Inc.

GSK said that it has won the approval of HGS management after lifting its bid to $14.25 per share in cash, from the previous level of from $13 per share.

"The transaction values HGS at approximately US$3.6 billion on an equity basis, or approximately US$3.0 billion net of cash and debt."

GSK had launched a $2.6-billion hostile bid in May after HGS rejected an informal approach the previous month.

Monday's agreed bid represents a premium of 99% to the HGS closing share price on April 18, 2012, which was the last day of trading before the informal bid was disclosed.

Copyright Agence France-Presse, 2012