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Sept 22 (Reuters) - A U.S. court ordered drugmaker Allergan Inc to produce board documents related to its strategy to counter a hostile bid by William Ackman’s Pershing Square Capital Management and Canada’s Valeant Pharmaceuticals International Inc.
The federal court, in central California, denied Allergan’s request for a protective order regarding the documents and ordered the company to produce “unredacted copies of the documents.”
“We respectfully disagree with the court’s decision and are reviewing our options,” an Allergan spokesman said in an emailed statement to Reuters.
Since Valeant and Pershing Square offered to buy Allergan on April 22, Allergan has consistently rejected their offer, saying it undervalues the company.
Allergan has also announced a series of cost cuts and said it was looking for acquisitions as it seeks to persuade shareholders they are better off if it stands alone.
“We believe Valeant and Pershing Square are conducting a fishing expedition for their own purposes and contrary to the best interests of Allergan stockholders,” Allergan’s spokesman said on Monday.
In a separate lawsuit, Ackman’s Pershing Square, Allergan’s biggest shareholder, and Canada’s Valeant sued the maker of Botox anti-wrinkle treatment last month, alleging that Allergan was trying to avoid a special meeting to give it time to find an alternative deal.
The battling parties settled their pending litigation last week before the Delaware Court of Chancery and agreed to a special shareholder meeting on the originally scheduled date.
“The Allergan records they (Valeant and Pershing) seek are not relevant to whether Valeant and Pershing Square committed insider trading in violation of 14e-3,” the spokesman said on Monday.
The case was filed in U.S. district court, central district of California. The case number is 8:14-cv-01214 and the name of the case is Allergan Inc, et al v. Valeant Pharms Int’l Inc., et al. (Reporting by Shailesh Kuber and Devika Krishna Kumar in Bangalore,; Editing by Don Sebastian and Steve Orlofsky)