GlaxoSmithKline begins $1.30-per-share cash tender offer for Genelabs Technologies

By Lisa Kerner

Charlotte, N.C., Nov. 12 - GlaxoSmithKline plc subsidiary Gemstone Acquisition Corp. began a cash tender offer to purchase all outstanding shares of common stock of Genelabs Technologies, Inc.

The tender offer will expire at midnight ET on Dec. 10, a GlaxoSmithKline news release said.

On Oct. 29, GlaxoSmithKline agreed to acquire Genelabs for approximately $57 million through a tender offer of $1.30 per share in cash.

GlaxoSmithKline said the merger is designed to strengthen its effort to develop and deliver novel therapies against the hepatitis C virus.

Genelabs' board of directors unanimously recommended that its shareholders tender their shares in the offer, which is expected to close in December, it was previously reported.

The offer is subject to GlaxoSmithKline's acquisition of 90% of the outstanding shares of Genelabs' common stock on a fully diluted basis, the release said.

Genelabs was advised by Cowen and Co.

Redwood City, Calif.-based Genelabs is a biopharmaceutical and diagnostics company specializing in gene-regulating drug discovery, immunological disorders and infectious diseases including hepatitis.

GlaxoSmithKline is a pharmaceutical and consumer health-related products company based in Brentford, England.

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