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What: Shares of biotech Human Genome Sciences
So what: Glaxo's offer values Human Genome at $13 per share and represents a whopping 81% premium to its Wednesday closing price. However, Human Genome's board rejected the offer as inadequate, fueling investor hopes of an even higher bid.
Now what: Human Genome said it has hired Goldman Sachs and Credit Suisse to help with the exploration of alternative strategies, which includes a possible sale of the company. Of course, the purchase of Human Genome would give Glaxo full rights to their partnered drugs and generate a whopping $200 million in cost synergies within a couple of years, so there's a good chance that Glaxo will indeed pay up to get the deal done. For lucky Human Genome shareholders waking up to today's whopping 100% gain, though, taking at least some dough off the table still seems prudent.
Interested in more info on Human Genome? Add it to your watchlist.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of GlaxoSmithKline and Goldman Sachs. Try any of our Foolish newsletter services free for 30 days.