Ackman Proposes Directors Ahead of Allergan Special Meeting

Jul 07, 2014 4:04 pm ET

(Updates shares in fifth paragraph.)

July 7 (Bloomberg) -- Pershing Square Capital Management LP, the hedge fund run by Bill Ackman, proposed six new directors for Allergan Inc., the company Ackman wants Valeant Pharmaceuticals International Inc. to buy.

Pershing Square, which amassed a 9.7 percent stake in Allergan ahead of Valeant’s takeover bids, has called for a special meeting of Allergan shareholders that will include a vote on the board and is expected to be held by the end of 2014.

The slate includes Cathleen Black, a senior adviser to RRE Ventures LLC, and Betsy Atkins, chief executive officer of Baja LLC, according to a statement today by Pershing Square. The others are: Fredric Eshelman, at Eshelman Ventures LLC; Steven Shulman, managing director of Shulman Ventures Inc.; John Zillmer, former executive chairman of Univar Inc.; David Wilson, the former head of the Graduate Management Admission Council, a not-for-profit education association.

“Each member of our slate of nominees is an independent, skilled leader with relevant domain, industry and/or executive management experience,” Ackman said in the statement.

Allergan shares fell 1.9 percent to $165.85 at 4 p.m. New York time. Valeant shares fell 2.2 percent to $123.29.

“We fully support Pershing Square’s efforts to call a special meeting of Allergan shareholders, which will provide the right forum for shareholders to express their views on the company’s leadership,” Valeant said in a statement today. Valeant urged Allergan shareholders to vote to hold the special meeting if they agree that the offer is compelling.

Allergan responded in a statement today that its current board has “significantly more industry experience” than Pershing’s nominees.

“We believe today’s announcement is a further attempt by co-bidders Pershing Square and Valeant to acquire Allergan at a grossly inadequate price that substantially undervalues the company and creates significant risks and uncertainties for Allergan stockholders,” the company said.