UPDATE 1-Glass Lewis sides with Ackman on Allergan meeting request

Mon Aug 4, 2014 9:03pm EDT
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(Adds details from letter, background to request)

By Svea Herbst-Bayliss

Aug 4 (Reuters) - Proxy advisory firm Glass Lewis on Monday suggested that Allergan Inc shareholders join hedge fund manager William Ackman in calling for a special shareholder meeting.

In a report issued to clients, the firm said that shareholders should fill out the paperwork required by Botox maker Allergan for anyone who would like to call for a special shareholder meeting.

"We are inclined to suggest shareholders would be best served setting aside the aforementioned risks in favor of the Pershing Square Written Request effort," Glass Lewis said.

Ackman, working with Valeant Pharmaceuticals Inc, has tried for months to broker a deal where Valeant would buy Allergan for $51 billion, but so far Allergan has steadfastly refused.

As a next step, Ackman whose $15 billion Pershing Square Capital Management owns 9.7 percent of Allergan, has laid the groundwork to call for a special meeting where he hopes to replace the majority of the board with new directors who will be more receptive to the takeover bid.

The report could be seen as a win for Ackman in the increasingly bitter battle for Botox maker Allergan's future.

Allergan requires a shareholder to have the support of 25 percent of all shares in order to call a special meeting and its bylaws require the shareholders who want to make such a request to do it in writing.   Continued...