New York, NY, United States (4E) – Allergan Inc said Friday that it rejects Pershing Squire’s definitive proxy solicitation in relation with the request for a special meeting with stockholders, where the hedge fund tries to replace most of its directors to expedite Allergan’s hostile takeover by Valeant Pharmaceuticals.
If called, Allergan stockholders would be asked in the special meeting to remove majority of its current board members in connection with Valeant Pharmaceuticals’ hostile acquisition for the botox maker valued at $53bn.
Allergan thinks Pershing Square seeks to replace a majority of the directors because it is supporting Valeant’s takeover bid for Allergan at a grossly discounted price. Valeant’s offer provides huge risks and uncertainties for its stockholders, Allergan said.
Shareholders were informed by Allergan to ignore at this point of time the proxy solicitation filed by Pershing Square.
Activist investor William Ackman-led Pershing Square recently unveiled its list of six nominees for the Allergan board. The hedge fund control’s 9.7 percent of Allergan and is backing Valeant’s attempt to buy the company.