Allergan Will Answer Bill Ackman’s Questions Only If Posed In The Proper Form

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And that form is a lawsuit which he has to pay lawyers to file. Phone calls, e-mails, letters, telegrams, CNBC appearances, PowerPoint presentations and carrier pigeons with the query, “Will my plan to solicit proxies to oust a majority of your stupid, intransigent board cause me troubles vis-à-vis poison pills?” were allegedly and will be in the future ignored, returned unread or turned over to Allergan’s vaunted R&D operations.

Allergan Inc. has reached an agreement with activist investor William Ackman that gives Mr. Ackman more freedom to coordinate with other shareholders as he seeks to push the Botox maker toward a deal with Valeant Pharmaceuticals International Inc.

Under the agreement, which resolves a lawsuit brought by Mr. Ackman earlier this month, Mr. Ackman's Pershing Square Capital Management LP won't trigger Allergan's "poison pill" defense by working closely with other investors to call a special meeting….

"This resolution provides the clarification we were seeking to allow Allergan shareholders to proceed with the process of calling a special meeting without fear of tripping the pill," Mr. Ackman said in a statement.

Allergan said in a statement it "is pleased that it was able to address the rights of all stockholders without the need of guidance from the Delaware Court." It said the agreement "simply makes it clear how the bylaws and the [poison pill] work together."

Pershing, Allergan Resolve Poison Pill Dispute [WSJ]
Allergan Poison Pill Won’t Be Triggered by Pershing Call [Bloomberg]

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