Allergan Brushes Aside Pershing Square's Proxy Solicitation

(RTTNews) - Allergan Inc (AGN) Friday brushed aside the definitive proxy solicitation filed by Pershing Square in connection with the request for a stockholders' special meet, where the hedge fund seeks to replace a majority of its board members and ease the path for Allergan's hostile acquisition by Valeant Pharmaceuticals.

At the special meeting, if called, Allergan stockholders would be asked to remove most of its existing directors in connection with Valeant Pharmaceuticals International (VRX, VRX.TO)'s $53 billion hostile bid for the botox maker.

Allergan said under its current board, which includes highly experienced individuals, the company continues to execute on its plan to drive growth and generate value for shareholders.

Allergan believes Pershing Square's aim to replace a majority of the board is an effort to support Valeant in its bid to acquire Allergan at a grossly inadequate price. Allergan said Valeant's offer creates significant risks and uncertainties for its stockholders.

"Valeant has repeatedly failed to address the serious concerns raised by Allergan and important members of the investment community about Valeant's anemic organic growth driven by unsustainable price increases, among other fundamental business model issues," Allergan said.

Allergan advised its shareholders to take no action at this point of time in connection with Pershing Square's proxy solicitation.

Recently, Pershing Square, led by activist investor William Ackman, disclosed a slate of six director nominees for the board of Allergan. The hedge fund has a 9.7 percent stake in Allergan and is keen that Valeant acquire the company. Allergan, however, has consistently spurned Valeant's offers and has questioned its acquisition-led growth strategy.