Allergan and Valeant unable to agree… even on a date

Wednesday, September 3 2014 | 00 h 00 min | News

Valeant and investor

William Ackman have obtained a three-day trial to begin on October 6 in Delaware. The objective: to have the special meeting of Allergan shareholders moved up to mid-November from the December 18 date (see August 28, 2014 news clip).

At the meeting, shareholders will decide the fate of directors who oppose the hostile takeover bid by Valeant and Pershing Square.

Valeant and Ackman believe that Allergan chose the December 18 date to give it time to find an alternative deal. They argue that Allergan had no intention of calling the special meeting, an argument that Judge Andre Bouchard accepted in his decision.

Allergan continues to maintain that the December 18 date was chosen to give the court in California time to render its verdict in the lawsuit against Pershing Square, Ackman’s hedge fund, for insider trading.

Pershing Square secretly began accumulating Allergan shares in February 2014. It disclosed its nearly 10% stake on April 21. The next day, Valeant and Pershing Square announced their hostile takeover bid. Allergan’s shares were pushed higher and the value of Pershing Square’s stake in the company rose to $1 billion.

If Pershing Square loses its case, it will not be allowed to vote at Allergan’s special meeting, which is why it wants the meeting date bumped up. Stay tuned…

Source: http://www.reuters.com/assets/print?aid=USKBN0GR1RT20140827