GlaxoSmithKline extends and reduces tender offer

GlaxoSmithKline (GSK) has reduced the tender offer to acquire Genelabs, it announced this week.

The company added it has also extended the proposal, following the original expiry on December 29th.

Genelabs’ outstanding shares of common stock are set to be purchased for $1.30 (0.90 pounds) in cash per share, less any necessary withholding taxes and interest.

Established on a fully dilated basis, the minimum condition in the deal is predicted – by GSK – to be 74.8 per cent of the remaining shares in the company.

The wholly-owned subsidiary of the organisation – Gemstone Acquisition Corporation – was granted by Genelabs the top-up option, which equals one share more than 90 per cent of the outstanding dividends.

As a result, the expiry date is now 00:00 Eastern Time on January 6th, unless another extension is announced.

Though the tender offer has been reduced and extended, GSK notes the other terms and conditions – announced on November 12th – still remain the same.

Earlier this month, the company said it would collaborate with Archemix to discover, develop and commercialise aptamer therapeutics.

The products are used to treat inflammatory diseases, including rheumatoid arthritis.