Allergan takeover battle: attempt to sack directors at special meeting

In a solicitation statent filed with the United States Securities and Exchange Commission, hedge fund Pershing Square Capital Managent, which owns 9.7% or Allergan, wants to call the special meeting of Allergan shareholders to rove current mber of the company’s board and request that it promptly engage in good faith discussions with Valeant in regard to the latter’s offer to merge.In response, Allergan is urging shareholders to refrain from any action, including returning any proxy card sent by co-holders Pershing Square and Valeant and waiting until the matter is reviewed by Allergan’s directors and until proxy solicitation materials are provided.The takeover offer has been increased to $US72 per share plus 0,83 shares of Valeant stock per Allergan share, however that has been rejected by the Allergan board as substantially undervaluing the company, creating significant risks and uncertainties for its stockholders, and not being in the best interests of the company and its stockholders.If Pershing Square gets its way, a special meeting could be held on 7 August.In the midst of the hostile bid for Allergan, activist investor Mr Bill Ackman said shareholders are willing to hand over the company for $180 per share, just about in line with the latest offer from Valeant and Mr Ackman’s Pershing Square.