Valeant and Pershing Square win Bid to Fast-Track Allergan Shareholder Meeting
Published By : 28 Aug 2014 | Published By : QYRESEARCH
Valeant Pharmaceuticals International Inc. and Pershing Square Capital Management have won a proposal regarding the rapid proceedings of a proposed shareholder meeting of Allergen Inc., as a part of Valeant Pharmaceutical’s takeover bid worth $54 billion.
The proceedings are set to decide whether the support of enough numbers of Allergan stockholders was properly secured or not before forcing a special meeting that may result in the replacement of a good number of company’s directors.
Valeant Pharmaceuticals, the company wishing to takeover Allergan Inc., and Pershing Square Capital Management, Allergan\'s biggest shareholder company, seek the shareholder meeting as a way to clear any legal proceedings before their takeover of the makers of Botox cream. The lawsuit filed against Allergen claims that Allergen was trying to buy time to find an alternate deal before any stakeholder meeting took place.
Chancellor Andre Bouchard of the Delaware Court of Chancery ordered the ruling, which set a October 6 date for the trial. This may mean that the officials from Allergan Inc., who rejected to comply with the buyout offer, may have to participate in an investor meeting a month earlier than the December 18 date announced by Allergan. Apparently, at this meeting Valeant and Pershing Square will lead to the election of new managing personnel and open discussions about the deal.
The ruling came after Valeant and Pershing sued Allergan saying that the company did not at all intended to organize any such meeting. Subsequently, the December 18 announcement came from Allergan.
Since the offer from Valeant and Pershing Square came for buying Allergan in April this year, Allergen has constantly rejected the offer citing that the deal undervalues Allergan’s capability. The company has since said that it was looking for acquisitions to convince its shareholders that the company is better off without the takeover. The company has also announced a series of cost-cuts since the offer.