Pershing Square can go ahead with its call for Allergan shareholder meeting

Canadian Press DataFile |

NEW YORK, N.Y. - Pershing Square Capital Management and Allergan Inc. have reached a deal to allow the activist investment fund to try and call a special meeting of shareholders to oust six directors at the Botox maker.

Pershing is teamed up with Valeant Pharmaceuticals (TSX:VRX) in the company's hostile takeover for Allergan.

The agreement ensures Allergan's poison pill defence won't be triggered by Pershing Square's efforts to win support to call a meeting.



Pershing, which controls 9.7 per cent of Allergan's shares, feared that if Allergan investors were seen to be working together, the poison pill would be triggered.

It says the settlement paves the way for it to begin actively soliciting support to call the meeting. Investors holding 25 per cent of Allergan's shares need to support the move for a meeting to be held.

Allergan has repeatedly refused to meet with Valeant to discuss its more than US$50 billion stock-and-cash bid.

It says the US$72 in cash and 0.83 of a Valeant share for each Allergan share offered undervalues the company and creates significant risks and uncertainties for its shareholders.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
XALL Xalles Holdings Inc 1.25 0.00 0.00 0

Comments

Trending Articles

  • No items found.

Emerging Growth

Naked Brand Group Inc

Naked Brand Group Inc through its wholly-owned subsidiary is engaged in manufacturing and selling of direct and wholesale men's undergarments to consumers and retailers.

Private Markets

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…