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May 09, 2011
 |  BioCentury  |  Finance

Voting for the local hero

Actelion shareholders jeer Elliott Advisors; reject firm's proposals

Annual company meetings are generally pretty staid affairs, but the representative of activist investor Elliott Advisors was booed at Actelion Ltd.'s AGM last Thursday, as local shareholders turned out to support the company.

With its proposals rejected out of hand, Elliott now must decide whether to maintain its 6%-plus stake, admit defeat and unwind its holdings, or cobble together a 10% holding by itself or with other shareholders that would be required to force an extraordinary general meeting.

Elliott declined to comment on its plans, but unwinding looks like a losing proposition. Starting last October, Elliott acquired its shares at prices ranging from CHF44.70 to CHF57.95. Given that Actelion closed last Friday at CHF45.72, it is likely that most of the firm's shares are under water.

For Elliott to find any success at a future EGM, it would likely need to address concerns expressed by shareholders...

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