GSK announces end of offering period for Praecis bid

GlaxoSmithKline (GSK) has announced that its initial offering period for its tender offer for the shares of Praecis Pharmaceuticals has expired. The offering period for the bid, conducted through wholly-owned GSK subsidiary Pilgrim Acquisition (PAC), ended at 00:00, New York City time, February 6th.

Upon the expiration of this offering period, 8,438,685 shares in Praecis, approximately 78.53 per cent of the common stock in the firm, were tendered to PAC.

GSK announced the start of a second offering period for the remainder of common stock in Praecis, with the same bid of $5 (2.54 pounds) per share as previously. This stage of the offer will end on February 14th.

“Pursuant to the terms of the previously announced merger agreement, GSK expects to effect a merger of PAC with and into Praecis,” GSK reports.

“As a result of the merger, Praecis will become a wholly-owned subsidiary of GSK,” it added.

The company stated that it is looking to complete its merger with Praecis as soon as is practically possible.

GSK announced its cash offer for Praecis on January 9th, with the board of Praecis unanimously recommending the tender offer to its shareholders.