Wednesday, 29 June 2016
Last updated 49 min ago
Jun 13 2014 | 1:11pm ET
Pershing Square Capital Management wants a judge’s sanction for its planned proxy battle with Botox-maker Allergan Inc.
The hedge fund said it had filed suit to ensure that its plan to call a special shareholder meeting would not trigger Allergan’s poison pill, adopted after Pershing Square bought a nearly 10% stake in the company in conjunction with Valeant Pharmaceuticals International, which has launched a $53 billion hostile takeover bid.
The pill is triggered if an investor buys more than 10% of Allergan’s shares. But Allergan bylaws require that investors owning 25% of its shares seek a special meeting before one is called. Pershing Square wants a court to rule that such a group would not cause the poison pill to go into effect.
According to the hedge fund, Allergan has declined to say whether or not it would.
Pershing Square said last week that it would seek to oust a majority of Allergan’s board to put in place directors who will negotiate with Valeant. The move came just days before Allergan rejected Valeant’s increased offer for the company—and once again refused to sit down for talks.