Ackman Announces Huge Stake in Valeant Pharmaceuticals

Mar 9 2015 | 2:50pm ET

Bill Ackman and his activist fund Pershing Square Capital Management have built a near 5% stake in Valeant Pharmaceuticals.

The near $3.3 billion position makes Pershing Square the Canadian drug company's fifth-largest stakeholder.

Shares of Valeant rose nearly 3% after Ackman's fund disclosed the position. The news comes just months after Ackman partnered with the company in an attempt to takeover Botox manufacturer Allergan. 

In 2014, Allergan rejected Valeant's takeover bid, sued Ackman's hedge fund, and sold itself to rival Actavis.

But reports indicate that Ackman's latest disclosure isn't centered on shareholder activism this time. Rather than pushing for board appointments, spin-offs, or strategy changes, Ackman is expected to take a passive approach to his investment this time around.

Although the takeover bid for Allergan failed in 2014, Valeant recently scored a huge acquisition with the purchase of Salix Pharmaceuticals for roughly $14 billion.

Last year, Pershing Square was the top performing large hedge fund with more than $1 billion in assets under management.


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