Allergan Agree to Special Shareholder Meeting

Allergan reaches truce with suitors on special shareholder meeting

Allergan and its suitors Valeant Pharmaceuticals and Pershing Square Capital Management have settled their pending litigation in a court in Delaware. The settlement now means that a special shareholder meeting, which had been originally scheduled on December 18th.

Pershing Square and Valeant sued Allergan last month, after it was alleged that Allergan were trying to avoid this special meeting, to give it time to find an alternative deal however the meeting now has been set for December.

Pershing Square are the largest shareholder in Allergan with a stake on 9.72 percent. Pershing and Valeant made a hostile takeover bid for the botox and anti wrinkle company Allergan. Since April Allergan have been fighting an up hill battle for investor support of a stand alone plan, which would include cutting costs and making an acquisition of its own.

Billionaire William Ackman who is the CEO and founder of Pershing Square has been pushing for a special meeting of shareholders, where he is hoping to replace existing board members. with his own nominees; who Ackman believes will be more receptive to Valeant’s bid.

Allergan said on Monday that it continued to believe that Valeant’s exchange offer is “grossly inadequate” they also urged their shareholders to reject the offer.

I don’t think this is the last time all three of these parties will hit the headlines or be in court, back in August Allergan filed a lawsuit in California. The lawsuit accused Valeant and Ackman of violating security laws by using insider information, in preparation for a takeover bid.

Depending on the next developments, their could be a huge fall out from this situation with neither party willing to back down. Ultimately which ever party does come out on top looks they will be footing a huge legal battle to see off the unsuccessful party.

Alex Carson

PiR Resourcing leaders in senior life science resourcing. For more news and information, you can follow us on Twitter and LinkedIn  For all our latest roles in the Life Science sector please click here.

 

 

 

 

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