Valeant, Pershing take Allergan bid hostile
After bumping its bid for Allergan Inc. (NYSE:AGN) on Friday, Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX) along with Allergan's largest shareholder are making moves to go hostile. Hedge fund Pershing Square Capital called for a special shareholders meeting to remove six of Allergan's nine directors and requested that the board "promptly engage in good faith discussions" with Valeant regarding its bid. Under Allergan bylaws, Pershing needs consent from shareholders holding at least 25% of outstanding shares to hold the meeting, or about 15.3% in addition to the 9.7% stake Pershing holds. During a conference call, Pershing said the meeting could take place as early as Aug. 7, though Allergan could delay the meeting by up to 120 days. Allergan issued a statement in response, urging its shareholders to "refrain from taking any action" until they review the board's recommendation.
On Friday, Valeant bumped up the cash component of its offer to $72 per share from $58.30 for Allergan (see BioCentury Extra, May 30). ...