Deals
Ackman’s Allergan Court Victory May Prove Costly Later
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The judge who just handed Bill Ackman a legal victory over Allergan Inc. may also have given regulators and litigation-minded investors fodder to press insider-trading allegations against the hedge fund manager.
The crux of the matter is the activist investor’s approach to the hostile takeover of Allergan: Ackman’s Pershing Square Capital Management LP quietly amassed a stake in the drug maker for months after he agreed to back Valeant Pharmaceuticals International Inc.’s pursuit of the company. He built the stake using options, before the bid was made public.