GlaxoSmithKline won't take no for an answer from Human Genome Sciences.
About a week ago, HGS ($HGSI) adopted a poison pill that dilutes the holdings of any party that acquires more than 15% of its shares without the approval of its board. But GSK ($GSK) has now adjusted its hostile, $2.6 billion bid to include a condition aimed at thwarting the defensive move.
According to a report in The Deal, GSK says that it adopted a condition "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."
The two companies are at loggerheads over a deal. HGS says that Glaxo simply waited until its share price hit rock bottom before offering a bargain-basement price for the maker of Benlysta. GSK says it's being more than fair. To be continued …
- here's the story from The Deal