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

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...