July 7 William Ackman's Pershing Square Capital
Management proposed on Monday a slate of six directors for the
board of Allergan Inc as the hedge fund presses forward
with its $53 billion takeover bid with Valeant Pharmaceuticals
International Inc for the Botox maker.
Pershing Square nominated Betsy Atkins, chief executive
officer of venture capital firm Baja; Cathleen Black, senior
adviser at RRE Ventures who was also a former chancellor of New
York City's public schools and a former president of Hearst
Magazines; Fredric Eshelman of investment firm Eshelman
Ventures; Steven Shulman, managing director of Shulman Ventures,
a private equity firm; David Wilson, former CEO of the Graduate
Management Admission Council, and John Zillmer, former executive
chairman of chemicals distributor Univar Inc.
Allergan is best known for Botox, an anti-wrinkle injection.
Botox is also used to treat other medical conditions, including
chronic migraine headaches.
Pershing Square is pushing for a special meeting of Allergan
shareholders to consider the removal of six incumbent directors
and the appointment of its slate of nominees.
Canada's Valeant has said it already has enough shareholders
on its side to call the meeting. It would need the support of
holders of at least 25 percent of the shares.
Allergan, based in Irvine, California, said its current
board includes people with significantly more industry
experience than Pershing Square'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," an Allergan spokesperson said.
Allergan is expected to unveil details of its plan to remain
a stand-alone company when it releases second-quarter results
sometime in July. The company has said it is considering
acquisitions of its own, additional spending cuts or taking on
debt to buy back shares.
(Reporting by Susan Kelly in Chicago; Editing by Jan Paschal)