UPDATE 3-Allergan investors owning 35 pct to demand special meeting -sources

Thu Sep 11, 2014 2:14pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds special meeting agenda)

By Soyoung Kim and Olivia Oran

NEW YORK, Sept 11 (Reuters) - Billionaire William Ackman has signed up Allergan investors who combined own at least 35 percent of the company to call a special shareholder meeting, according to people familiar with the matter, giving the hedge fund manager a victory in his fight to acquire the Botox maker.

Ackman, whose Pershing Square Capital Management is Allergan's largest shareholder with a 9.7 percent stake, has teamed up with Canada's Valeant Pharmaceuticals International Inc to pursue a hostile takeover bid for Allergan.

Ackman and other Allergan shareholders who own a combined 31 percent already asked the company last month to call a special meeting, at which he and Valeant hope to elect new board members and open discussions on a deal.

But crossing the 35 percent mark would mark an important step because Allergan is trying to prevent Ackman from voting his nearly 10 percent stake, alleging that the investor improperly built up his holding as he prepared to make a bid with Valeant.

Even in the unlikely event Ackman's votes are not counted, having 35 percent of investor consent would satisfy Allergan's by-laws that at least one quarter of its shareholders request a special meeting.

Pershing Square expects to deliver requests from additional shareholders for a special meeting as soon as Thursday, putting the number at 35 percent, one of the people added.

All the people asked not to be named because the matter is not public. Representatives for Pershing Square declined to comment and Valeant could not be immediately reached for comment.   Continued...