Allergan Inc. shareholders will get the chance to vote on Dec. 18 whether to replace members of the drugmaker’s board as part of a $54 billion hostile takeover fight with Valeant Pharmaceuticals International Inc.
The announcement of the vote comes after Valeant and the hedge fund Pershing Square Capital Management LP said on Aug. 22 that they had the backing of 31 percent of Irvine, California-based Allergan’s shareholders to call the meeting.
Valeant teamed with investor Bill Ackman’s Pershing Square to help drive a hostile takeover of Allergan. The two sides have fought for months, trading allegations and lawsuits as Irvine, California-based Allergan rejected Valeant’s offers.
Allergan’s board has called Valeant’s offer “grossly inadequate.” The vote was announced in a court filing yesterday.
Valeant, based in Laval, Quebec, wants to acquire Allergan to expand its portfolio and become one of the world’s largest drugmakers. David Pyott, Allergan’s chief executive officer, has fought to keep the company independent, announcing a restructuring including 1,500 job cuts.
Valeant declined to comment on the matter. Allergan didn’t return calls for comment. A spokesperson for Pershing Square said they couldn’t immediately comment on the situation.