Pershing Seeks To Remove Six Allergan Directors

(RTTNews) - William Ackman's Pershing Square Capital Management LP on Monday called for a special meeting of shareholders as it seeks to remove six members from the current Board of Allergan Inc. (AGN).

In the latest development of the takeover battle of Allergan by Valeant and partner Pershing, William Ackman is seeking support from shareholders to oust six directors from the board and smoothen the process to consummate the merger. Pershing is the largest Allergan shareholder with a 9.7 percent stake in the company.

Pershing did not disclose the name of the Directors which it intends to oust from the Board of Allergan.

Meanwhile, Allergan issued a statement asking its stockholders to refrain from taking any action, including returning any proxy card sent by co-bidders Pershing Square and Valeant, until they have reviewed the recommendation of Allergan's Board of Directors.

Last Friday, Canadian drug maker Valeant had sweetened its offer, the second time in a week, for the Botox-maker, offering about $52.7 billion in cash and stock. Under the latest offer, Allergan shareholders will get $72 in cash and 0.83 of Valeant stock.

On Wednesday, Valeant had raised its unsolicited bid for Allergan to about $50 billion, but the move had impressed neither Allergan nor investors.

Valeant, along with Pershing Square, had made its first public offer of $48.30 in cash and 0.83 Shares of Valeant stock in April. However, the offer was rebuffed by Allergan stating that the proposal undervalued and created risks for its stockholders.

"We believe the market has spoken, and that shareholders see substantial value in Valeant's revised proposal. To date, the Board has refused to engage with Valeant in any way regarding a merger with Valeant," Pershing said in the filings.

Pershing has also requested Allergan Board to promptly engage in good faith discussions with Valeant regarding the offer to merge with the company.

VRX.TO is currently trading at $143.61, up $1.27 or 0.89%, on the TSE.

AGN is currently trading at $171.35, up $3.89 or 2.32%, on the NYSE.