HGS investor tries to block poison pill
A HUMAN Genome Sciences shareholder has filed a lawsuit against the board and requested a Maryland court to temporarily restrain the company from using a “poison pill” in response to GlaxoSmithKline’s hostile $2.6bn (£1.66bn) takeover offer.
Human Genome adopted the stockholder rights plan earlier this month in an attempt to ward off GlaxoSmithKline in what is becoming an increasingly acrimonious battle between the companies that together sell new lupus drug Benlysta.
The British company had intended to take its $13-a-share offer direct to investors after Human Genome’s board said it was inadequate.
However, on 23 May, GlaxoSmithKline said it would not proceed with its offer unless the US biotechnology company dropped a poison pill shareholder rights plan imposed to block the deal. The term poison pill usually refers to a company’s move to ward off any unwanted or hostile takeover attempts.
Shareholder and plaintiff Duane Howell filed the lawsuit on 25 May, asking the court to restrain the board from invoking the defensive tactic, court documents showed. The case is Duane Howell and others vs H Thomas Watkins, et al.