Allergan Sets Shareholder Meeting to Possibly Oust Directors

Irvine-based Botox maker Allergan today tentatively set a Dec. 18 special shareholder meeting in which stockholders would be asked, among other things, to remove a majority of the company’s existing directors in connection with an unwelcome takeover bid by a Canadian rival.

Valeant Pharmaceuticals International Inc. and Pershing Square, a hedge fund run by activist investor Bill Ackman, have led a $53 billion takeover bid for Allergan.

Allergan announced last month it would lay off about 1,500 employees, mostly in the Southland, and eliminate about 250 vacant positions in an attempt to head off the hostile takeover attempt by the Quebec-based company.

Last month, the company’s chief executive attempted to shore up investors.

“With continuing strong momentum, Allergan recorded the strongest increase in absolute dollar sales in any quarter in our history, and again delivered sales and earnings per share growth above the high end of our expectations,” said David E.I. Pyott, Allergan’s chairman and CEO.

Allergan executives are banking on a restructuring the rest of the year that they estimate will offer pre-tax savings of about $475 million.

Allergan executives claim Valeant’s takeover is “grossly inadequate” and “substantially undervalues Allergan, creates significant risks and uncertainties for Allergan stockholders and is not in the best interests of Allergan and its stockholders.”

--City News Service

PHOTO Patch file photo.