Valeant names ValueAct's Ubben to board effective Oct. 1

Thu Sep 25, 2014 8:45am EDT
 
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Sept 25 (Reuters) - Valeant Pharmaceuticals International Inc said on Thursday it had named the head of a top shareholder, ValueAct Capital, to its board of directors and vowed to continue with its hostile takeover attempt on Botox maker Allergan Inc.

ValueAct had a seat on Valeant's board until May, when its representative Mason Morfit did not seek re-election in order to devote time to Microsoft Corp.

ValueAct's Jeffrey Ubben said he will work with Valeant's board on securing the Allergan acquisition and that the company is anticipating increasing its stake in the company, which stood at 5.7 percent in May.

Ubben has previously expressed some concerns about the deal, telling Reuters in August that while he still liked the deal, a drawn-out battle to control the company would come at too high of a cost for Valeant if it lost other opportunities.

Since then, Allergan has set a Dec. 18 date for a meeting of shareholders at the request of Pershing Square Capital Management and other shareholders representing more than 35 percent of outstanding shares.

Pershing Square, which owns nearly 10 percent of Allergan, is seeking to name new board members at Allergan during the meeting. Pershing Square and Valeant in April made a bid now worth about $52 billion for Allergan, but the Botox maker has consistently rejected the deal saying it undervalues the company. (Reporting by Caroline Humer; Editing by Meredith Mazzilli)