Pershing Square Asks Court For Allergan Assurance

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.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of