Tags: Allergan | Pershing Square | court | poison pill

Allergan Settles Suit With Pershing Square Over Poison Pill

Friday, 27 Jun 2014 04:38 PM

Allergan Inc. and Pershing Square Capital Management LP said they settled a lawsuit filed in Delaware Chancery Court, agreeing that an anti-takeover rights plan isn’t triggered by efforts to call a special shareholder meeting.

Resolution of the suit brought by Pershing Square is critical to Valeant Pharmaceuticals International Inc.’s plans to take over Allergan, the maker of the Botox wrinkle treatment. Allergan has rejected Valeant’s $54.2 billion offer as inadequate.

“We are pleased that further court action is not necessary to enable us to proceed with calling a special meeting of Allergan shareholders,” William Ackman, chief executive officer of Pershing Square, said in the statement.

Ackman is pushing for the takeover and wants to replace board members. His New York-based hedge fund owns 9.7 percent of Irvine, California-based Allergan in a joint venture with Valeant called PS Fund 1 LLC.

Allergan is happy it was “able to address the rights of all stockholders without the need of guidance from the Delaware court,” Scott Bisang, a spokesman for the company at Joele Frank, said in an e-mailed statement. “The stipulation simply makes it clear how the bylaws and the rights agreement work together.”

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Allergan Inc. and Pershing Square Capital Management LP said they settled a lawsuit filed in Delaware Chancery Court, agreeing that an anti-takeover rights plan isn't triggered by efforts to call a special shareholder meeting.
Allergan, Pershing Square, court, poison pill
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2014-38-27
Friday, 27 Jun 2014 04:38 PM
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