GlaxoSmithKline Commences Tender Offer to Acquire Genelabs Technologies, Inc.
LONDON, Nov. 12 /PRNewswire-FirstCall/ -- GlaxoSmithKline (LSE/NYSE: GSK)
announced today that Gemstone Acquisition Corporation, a wholly-owned
subsidiary of GSK, is commencing a cash tender offer to purchase all
outstanding shares of common stock of Genelabs Technologies, Inc.
(Nasdaq: GNLB), for $1.30 in cash without interest and less any required
withholding taxes. The tender offer is being made pursuant to a previously
announced Agreement and Plan of Merger dated October 29, 2008 among Genelabs,
Gemstone and SmithKline Beecham Corporation, a wholly-owned subsidiary of GSK.
The Genelabs board of directors has unanimously determined that the tender
offer and the merger are fair to, and in the best interests of, Genelabs and
the shareholders of Genelabs and adopted and approved the merger agreement,
the tender offer and the merger. The Genelabs board of directors unanimously
declared the advisability of the merger agreement and recommends that
Genelabs' shareholders tender their shares pursuant to the tender offer.
The tender offer will expire at 12:00 midnight EST on Wednesday, December
10, 2008, unless extended in accordance with the merger agreement and the
applicable rules and regulations of the Securities and Exchange Commission
(SEC). The offer is subject to various conditions, including the acquisition
by GSK of 90 percent of the outstanding shares of Genelabs' common stock on a
fully diluted basis.
GSK today will file with the SEC a tender offer statement on Schedule TO
setting forth in detail the terms of the tender offer. Genelabs today will
file with the SEC a solicitation/ recommendation statement on Schedule 14D-9
setting forth in detail, among other things, the recommendation of Genelabs'
board of directors that Genelabs' shareholders accept the tender offer and
tender their shares pursuant to the tender offer. Questions and requests for
assistance may be directed to the Information Agent for the offer, MacKenzie
Partners, Inc., at (212) 929-5500 or (800) 322-2885 (toll free).
About GlaxoSmithKline plc
GlaxoSmithKline plc -- one of the world's leading research-based
pharmaceutical and healthcare companies -- is committed to improving the
quality of human life by enabling people to do more, feel better and live
longer. For company information including a copy of this announcement and
details of the company's updated product development pipeline, visit GSK at
http://www.gsk.com.
About Genelabs
Genelabs is a biopharmaceutical company focused on the discovery and
development of novel compounds for infectious diseases. In addition to a
late-stage drug candidate for hepatitis E partnered with GlaxoSmithKline, the
company is advancing multiple partnered and proprietary compounds designed to
selectively inhibit replication of the hepatitis C virus. For more
information, please visit http://www.genelabs.com.
Cowen and Company was the exclusive financial advisor to Genelabs in this
transaction.
This announcement and the description contained herein is neither an offer
to purchase nor a solicitation of an offer to sell shares of Genelabs. GSK
and Gemstone Acquisition Corporation are filing with the SEC a tender offer
statement on Schedule TO containing an offer to purchase, forms of letters of
transmittal and other documents relating to the tender offer, and Genelabs is
filing with the SEC a solicitation/recommendation statement on Schedule 14D-9,
with respect to the tender offer. GSK, Gemstone Acquisition Corporation and
Genelabs are mailing these documents to the shareholders of Genelabs. These
documents contain important information about the tender offer and
shareholders of Genelabs are urged to read them carefully. Shareholders of
Genelabs will be able to obtain a free copy of these documents (when they
become available) and other documents filed by Genelabs or GSK with the SEC at
the website maintained by the SEC at www.sec.gov. In addition, shareholders
will be able to obtain a free copy of these documents (when they become
available) from Genelabs by contacting Genelabs at 505 Penobscot Drive,
Redwood City, California 94063.
Under the safe harbor provisions of the U.S. Private Securities Litigation
Reform Act of 1995, GSK cautions investors that any forward-looking statements
or projections made by GSK, including those made in this announcement, are
subject to risks and uncertainties that may cause actual results to differ
materially from those projected. Factors that may affect GSK' s operations are
described under 'Risk Factors' in the 'Business Review' in the company's
Annual Report on Form 20-F for 2007.
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