A SHAREHOLDER in Human Genome Sciences (HGS) has lost a legal action to stop the American biotech company thwarting a $3 billion (£1.9 billion) hostile bid from Britain’s Glaxo Smith Kline.
Duane Howell, an American investor, had asked a court in Maryland to suspend HGS’s shareholder rights plan, which is designed to dilute any investor acquiring more than 15% of its shares. The tactic was deployed last month to deter Glaxo from proceeding with its offer. However, the court last week rejected Howell’s move.
HGS is trying to find a “white knight” bidder willing to make a better offer than Glaxo. It is working with Goldman Sachs and Credit Suisse. Last week, HGS accused Glaxo of trying to “disrupt” this process. Glaxo, which declined to comment, is expected to extend its offer to HGS investors to buy their shares.