GSK finalises $3bn takeover of HGS GlaxoSmithKline is to take over Human Genome Sciences after making an increased offer valuing the company at about $3bn, bringing to an end a three-month hostile courtship of the US biotech group. The UK pharmaceutical group raised its all-cash offer from $13 a share to $14.25 during weekend talks, following an initial refusal by HGS to accept its proposal. HGS launched a consultation in an effort to find an alternative buyer and had criticised GSK for refusing to participate, but failed to identify an alternative "white knight." Companies including Celgene in the US distanced themselves from discussions. Sir Andrew Witty, chief executive of GSK, said on Monday: "We are pleased to have reached a mutually beneficial agreement with HGS on friendly terms and believe the combination of GSK and HGS represents clear financial and strategic logic for both companies and our respective shareholders. The transaction meets GSK's strict financial criteria for acquisitions, and we expect will deliver significant returns over the long-term. GSK already controls Benlysta, HGS's drug for lupus, as well as the US biotech's other significant products in development, making alternative bids unlikely. The UK group had launched the takeover in part to increase synergies and cost savings, while also hoping to boost sales of Benlysta. It initially ruled out the need to increase its offer, which it made directly to shareholders after failing to win agreement from the HGS board, and on which it had already extended the deadline. GSK said the transaction valued HGS at about $3.6bn, or $3bn net of cash and debt, and represents a premium of 99 per cent to HGS's share price of $7.17 on April 18 2012, the last day of trading before HGS publicly disclosed GSK's initial offer. Lazard and Morgan Stanley advised GSK. Goldman Sachs and Credit Suisse advised HGS.