Allergan Spending $10M A Month Fighting Pershing Square, Valeant

Nov 6 2014 | 10:45am ET

Fending off the unwanted attention of Pershing Square Capital Management and Valeant Pharmaceuticals International is proving expensive for Allergan Inc.

The Botox-maker said it spent more than $30 million in the third quarter battling Valeant’s hostile takeover bid, which is backed by Pershing Square as part of an unusual partnership. The spending matched Allergan’s expenses in the battle in the second quarter, meaning the company is spending about $10 million per month to stave off the $53 billion deal.

Among those advising Allergan in its fight are law firms Wachtell Lipton Rosen & Katz and Latham & Watkins, and Bank of America Merrill Lynch and Goldman Sachs. The company has also engaged proxy solicitor Innisfree, forensic accountancies FTI Consulting and Alvarez & Marshall, and public-relations firm Joele Frank.

The expense of the fight pushed Allergan’s administrative costs for the third quarter up 21%, it said yesterday.

Pershing Square’s bid to oust a majority of Allergan’s board will go before its shareholders on Dec. 18. A federal judge this week refused to block Pershing Square, Allergan’s largest shareholder, from voting its 9.7% stake, potentially clearing the way for Valeant’s takeover.


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