GSK to launch $2.6 billion Human Genome tender offer

Human Genome rejected the approach from Britain's biggest drugmaker last month, saying it did not reflect the company's inherent value, but GSK insists its bid is "full and fair".

The U.S. pioneer of gene-based drug discovery sells with GSK a new drug for lupus, called Benlysta, and the companies are also collaborating on two other drugs for diabetes and heart disease that could become significant sellers.

Buying Human Genome would give GSK full rights to these partnered drugs.

A spokeswoman for GSK declined to say exactly when this week the tender would be launched. The tender will remain open for 20 business days after its commencement.

Human Genome has hired Goldman Sachs and Credit Suisse to explore strategic alternatives, including a possible sale of the company, and has invited GSK to join the process.

But GSK, which is being advised by Lazard and Morgan Stanley, said on Wednesday it would not participate in that strategic review process.

"GSK's participation in the process is unnecessary as its offer is not conditioned on due diligence or financing and can be completed expeditiously," it said in a statement.

"It is important for HGS shareholders to understand that GSK is committed to proceeding with its offer."

Many drugmakers are seeking deals to bolster their pipelines, as older products lose patent protection, and GSK's readiness to buy Human Genome is a sign of confidence in the drugs that the companies have been developing together.

(Reporting by Ben Hirschler; Editing by Will Waterman)