Wednesday, July 30th30.4°C
22568
21755

Pershing files documents for special meeting aimed at ousting Allergan directors

NEW YORK, N.Y. - Pershing Square Capital Management has formally asked Allergan shareholders to support its bid for a special meeting to remove six directors and allow Valeant to proceed with its hostile takeover bid.

The activist investment firm controls a 9.7 per cent stake in Allergan and has said in the past it hoped to call a meeting after teaming up with Valeant Pharmaceuticals (TSX:VRX) in its takeover attempt.

Pershing has now filed documents with the U.S. Securities and Exchange Commission asking shareholders to back the meeting. Investors holding at least 25 per cent of Allergan's shares need to support the call for a special meeting for one to be held.

In the filing, Pershing argues that shareholders see substantial value in Valeant’s revised proposal, but says Allergan's board has refused to engage with Valeant "in any way" when it comes to the merger and has made it difficult to gather the required support through company bylaws that it claims are too onerous.

Valeant says it "fully supports" Pershing Square's efforts to call the meeting because it would give shareholders the right forum to express their views on the offer.

Allergan has repeatedly refused to meet with Valeant to discuss its more than US$50-billion stock-and-cash bid, arguing the US$72 in cash and 0.83 of a Valeant share for each Allergan share undervalues the company and creates significant risks and uncertainties for its shareholders.

In a statement Monday, Allergan called the meting request "a further attempt by co-bidders Pershing Square and Valeant to acquire Allergan at a grossly inadequate price that substantially undervalues the company."

"Today’s announcement also fails 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,” the company said.

The Canadian Press


Read more Business News

22439


Recent Trending




Today's Market
S&P TSX15483.01+36.46
S&P CDNX1011.46-5.04
DJIA16870.90-41.21
Nasdaq4457.978+15.28
S&P 5001968.47-1.48
CDN Dollar0.9175-0.0041
Gold1310.00+6.70
Oil100.30-0.67
Lumber323.90+1.90
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.175-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.200.00
Cantex0.085+0.02
Anavex Life Sciences0.251-0.0165
Metalex Ventures0.085+0.005
Russel Metals35.04-0.25
Copper Mountain Mining2.82-0.04
Colorado Resources0.22-0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.035+0.015
Mission Ready Services0.15-0.005

 



22704

FEATURED Property
19964502525 Hillsborough Rd
4 bedrooms 5 baths
$2,990,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22461