Boston, MA 09/12/2014 (wallstreetpr) – More investors in Allergan, Inc. (NYSE:AGN) continue to show their support for a special shareholder meeting, The Wall Street Journal stated in an article. The meeting is being sought by William Ackman’s Pershing Square Capital Management LP and Valeant Pharmaceuticals Intl Inc (NYSE:VRX). The two are seeking to take over Allergan. However, there are risks of court delaying the special meeting that has tentatively been slated for December. Allergan placed stringent requirements to call for a special meeting.
In the latest update on the ongoing struggle to takeover Allergan, Inc. (NYSE:AGN), Pershing said that as many as 35% of Allergan shareholders now support their call for a special meeting, that figure includes its 9.7% stake in the business. That means that they have surpassed the threshold required to call such meeting.
Special meeting date
Earlier this month, Pershing and Valeant presented backing of more than 25% of Allergan shareholders in their effort to press for a special meeting. Allergan approved the request and set the special meeting date as December 18. However, Allergan, Inc. (NYSE:AGN) is challenging Pershing’s 9.7% stake that was part of the shareholder support forwarded for approval. Allergan alleges that the stake was acquired in violation of securities laws and cannot be considered a legitimate support. A court ruling on the matter is pending, and it could delay the meeting.
However, Pershing claimed that the support for the special meeting is so overwhelming that exclusion of its stake would not reverse the course of the matter. It said that they have the backing of about 39% of Allergan shareholders and that they were not able to submit all of it because of the bylaws that Allergan has put in place.
50-60 percent chance
Pershing and Valeant (NYSE:VRX) are seeking to takeover Allergan, Inc. (NYSE:AGN) for $53 billion, which is their most recent offer. However, Allergan is resisting the move, and it has been placing several hurdles against the acquisition attempt. The special shareholder meeting is expected to help them make friendly changes on the Board of Allergan. Analysts at BMO Capital Markets think that Pershing and Valeant have 50%-60% chance in acquiring Allergan.