Friday, 26 December 2014
Last updated 2 days ago
May 29 2014 | 9:58am ET
A California congressman has waded into the battle between Valeant Pharmaceuticals and Allergan Inc., asked federal regulators to look into Pershing Square Capital Management’s planned shareholder referendum on the latter’s bid for the former.
Rep. Edward Royce (R-Calif.) warned that the unusual effort taking place outside of Allergan’s standard proxy process “could make it difficult for shareholders to truly understand what is occurring.”
Pershing Square has filed for a non-binding shareholder referendum on Valeant’s offer for Allergan, which Valeant increased yesterday. The hedge fund is Allergan’s largest shareholder and is working with Valeant on the deal.
“This is the first shadow shareholder referendum of its kind filed at the” Securities and Exchange Commission, “and it’s at the expense of shareholder transparency,” Royce wrote the SEC Chairman Mary Jo White. “My immediate concern is that the SEC performs a thorough review of the details of this filing with that transparency in mid. Allergan’s investors and the U.S. capital markets deserve nothing less.”
Allergan is based in Irvine, Calif., just south of Royce’s district, and the company’s political action committee has donated $5,000 to Royce’s reelection campaign.
Pershing Square founder William Ackman rejected Royce’s concerns, telling The Wall Street Journal “there is nothing more transparent than a vote of the shareholders under the SEC’s proxy rules.” Valeant CEO Michael Pearson chided Allergan, which has rejected the offer and blasted Valeant’s business model, for “spending an awful lot of time trying to get [the shareholder vote] outlawed and not happen.”
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.