Ackman wants shareholders to push Allergan into takeover talks

Activist investor Bill Ackman wants Allergan Inc. shareholders to vote on a resolution that would encourage the Botox maker to meet with its potential acquirer, Valeant Pharmaceuticals International Inc.

In a filing Tuesday with the Securities and Exchange Commission, Ackman’s Pershing Square Capital Management called for a shareholder meeting to consider a resolution “to clearly demonstrate to the board that Allergan’s shareholders favor engagement with Valeant regarding the merger proposal.”

Ackman’s move came one day after Allergan defiantly rejected Valeant’s April 22 takeover offer, saying it undervalued the Irvine company and threatened its long-term growth.

Valeant, which has partnered with Ackman in the takeover attempt, said in a letter to Allergan shareholders that it intends to sweeten its initial bid for the company. It said it would outline details of the new proposal in a May 28 webcast.

Allergan responded to the new offensive, saying in a statement: “This is obviously a self-serving exercise by Pershing Square to further Valeant’s attempt to acquire Allergan.

“This is purportedly being done for the benefit of Allergan shareholders. In fact, this is nothing more than an attempt by co-bidders Pershing Square and Valeant to transfer the value inherent in Allergan to Pershing Square and Valeant at a price that substantially undervalues Allergan.”

Valeant has offered to pay $48.30 in cash and 0.83 of a share of its stock for each share of Allergan stock. At Monday’s closing price, that would amount to $156.33 for each Allergan share — 41% more than Allergan’s Dec. 31 closing price.

In a letter Tuesday to Allergan shareholders, Valeant chief Michael Pearson said the company’s new offer will be “substantially superior to an Allergan go-it-alone strategy.”

“On the call, we will discuss why our proposal offers greater short-, intermediate- and long-term shareholder value by managing Allergan’s assets under Valeant’s operating model,” Pearson said.

Allergan shares were up 1% to $161.37 late in Tuesday’s trading session. Valeant shares were up 0.7% to $129.74.