Pershing Square Says More Allergan Shareholders Support Call For Special Meeting

(RTTNews) - Pershing Square Capital Management, L.P., the largest shareholder of multi-specialty health care company Allergan, Inc. (AGN), said Friday that shareholders representing 35 percent of Allergan's shares now support the call for a special meeting of the Botox maker's shareholders.

Pershing Square said it has submitted additional requests for a special meeting from shareholders owning 1.29 percent of Allergan's shares, bringing the total to 35.1 percent of Allergan shares.

The hedge fund noted that excluding its own 9.7 percent stake in Allergan as well as an additional 4 percent that requesting shareholders could not submit due to "onerous" bylaws, the requests now exceed the 25 percent threshold required by Allergan's bylaws to call a special meeting of shareholders.

Bill Ackman, CEO of Pershing Square, said, "Allergan shareholders have spoken forcefully about their demand for a special meeting to be called by delivering requests representing 35% of the outstanding shares. Even excluding our shares, Allergan shareholders have met the Company's extraordinarily burdensome requirements to call the meeting."

According to Pershing Square, while Allergan has scheduled a special meeting of shareholders for December 18, the company is trying to delay or stop the meeting by pursuing spurious litigation against Pershing Square and Canada-based drug maker Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO).

In April, Valeant Pharmaceuticals in support with Ackman made a hostile bid to acquire Allergan for about $53 billion in cash and stock, but was spurned by Allergan.

In August, Pershing Square and Valeant Pharmaceuticals sued Allergan in Delaware, seeking declaratory relief to require Allergan to schedule the special meeting of shareholders on November 24. At the special meeting, Pershing Square plans to rejig the Allergan board and push forward the takeover bid.

Irvine, California-based Allergan would be forced to schedule the special meeting earlier if the court orders it to do so.

AGN closed Thursday's trading at $168.33, up $1.60 on a volume of 1.21 million shares.