GlaxoSmithKline (GSK) may bid $25/share for Human Genome Sciences (HGSI), the Daily Mail...

GlaxoSmithKline (GSK) may bid $25/share for Human Genome Sciences (HGSI), the Daily Mail speculates, citing their partnership in developing the FDA-approved lupus drug Benlysta. With Merck (MRK) and Biogen (BIIB) also sniffing around the company, GSK "could decide now would be an opportune time to make a move on HGS." HGSI +4.9% AH.

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Comments (2)
  • seekingalpha0
    , contributor
    Comment (1) | Send Message
    I'm pretty new to this. How does an offer from another company (at $25/share vs current value of $12.39) effect current share holders? A buyout I'm guessing is good. How so? Thanks for any details.
    18 Oct 2011, 02:03 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6290) | Send Message
    Sorry that this reply is late, but generally a buyout rumor causes the stock price to rise to the buyout bid unless it is rebuffed. There is a saying, "Buy on the rumor, sell on the news."
    21 Oct 2011, 10:14 PM Reply Like
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