Allergan will hold a Special Meeting of Stockholders on December 18, 2014 to discuss the hostile takeover bid by Valeant and Pershing Square Capital.
The meeting was demanded by some shareholders, including Pershing Square, which holds 9.7% of Allergan's capital. Shareholders will be asked whether they want to oust directors who oppose the merger with Valeant.
The Board of Directors continues to maintain that the offer greatly underestimates its real value. The company just posted the strongest quarterly sales in its history and plans to reduce its costs by approximately $475 M in 2015 compared to its previous strategic plan. It is predicting compound annual growth of earnings per share of more than 20% over the next five years.
In order to counter Pershing Square's influence within its own ranks, Allergan filed a lawsuit against Pershing under the Federal Securities Act regarding the purchase of Allergan shares. This happened barely a few weeks before the company joined Valeant in the hostile takeover bid. If Allergan's request for an injunction, filed in California, is accepted, Pershing Square will not be allowed to vote at the special meeting.
On another front, Allergan's discussions surrounding the purchase of pharmaceutical company Salix seem to be at a standstill. By buying Salix, Allergan would increase its value to a level that would make a buyout by Valeant difficult.
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Sources:
http://agn.client.shareholder.com/releaseDetail.cfm?ReleaseID=867860
http://agn.client.shareholder.com/releaseDetail.cfm?ReleaseID=867446
