Human Genome Sciences Inc. investors betting on a sweetened bid from GlaxoSmithKline Plc stand to reap a 13 percent return, even as their expectations of securing America’s biggest price increase diminish.
GlaxoSmithKline Plc will begin a hostile $2.6 billion tender offer this week for Human Genome Sciences Inc. after the U.S. company, its partner on the Benlysta drug for lupus, rebuffed a takeover approach.
Human Genome Sciences Inc. rejected GlaxoSmithKline Plc’s $13-a-share takeover offer partly because most of its biggest investors bought the stock at a higher average price, said two people with knowledge of the matter.
Human Genome Sciences Inc., the biotechnology company that spurned a $2.59 billion acquisition offer from GlaxoSmithKline Plc, said it undervalues the sales potential of leading treatment Benlysta. Glaxo said it doesn’t see the need to raise the bid.