Glaxosmithkline this afternoon said it has agreed to acquire Praecis Pharmaceuticals for $54.8 million in cash.
London-based pharmaceutical maker agreed to pay $5 per share in a tender offer for all outstanding shares of Praecis. All shares left untendered would be acquired at the same price.
The offer is more than double Praecis's closing price of $1.99 on the Nasdaq yesterday. The stock has traded between $1.84 and $6.44 over the past 52 weeks.
The Praecis board approved the deal, but closing is still subject to the tender of a majority of Praecis stock. The tender offer is expected to begin in January and close during the first quarter.
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Massachusetts-based Praecis is a biopharmaceutical company that is developing cancer therapies.
PA