GlaxoSmithKline withdraws Serono bid

GlaxoSmithKline (GSK) has reportedly withdrawn from talks to buy the European biotechnology company Serono SA.

The reports emanated from an article in The Business over the weekend with the newspaper citing the reason for the collapse as Serono refusing to accept the GSK bid.

According to The Business, GSK’s bid, which was believed to be no higher than $11 billion (?6.38 billion), was rejected by Serono chief executive and controlling shareholder, Ernesto Bertarelli.

Serono had failed to sell itself in a $15 billion (?8.70 billion) deal earlier in the year and it would appear that GSK had been hoping to land the Swiss-based firm in a cut-price deal.

While both GSK and Serono have failed to respond to the reports as yet, there is some speculation that any sale for Serono will now be at a lower price than anticipated by the company due to last week’s news that Rebif, the company’s multiple sclerosis treatment, would face increased competition from Elan Corporation’s Tysabri.

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