Pershing Square chief urges Allergan not to favor Actavis over Valeant in negotiations

10 November 2014

The chief executive of the capital management company assisting Canadian drugmaker Valeant Pharmaceuticals (NYSE: VRX) in its attempts to purchase Allergan (NYSE: AGN) urged it to initiate an open sale process as reports emerged that the company had entered negotiations with Ireland-headquartered generics major Actavis (NYSE: ACT).

William Ackman, chief executive of Pershing Square Capital Management, said an open bidding process is needed so that neither party gains an advantage. He also said that due to strategic overlap, Valeant is in a position to pay more for Allergan.

Last week Allergan disclosed in a filing to the US Securities and Exchange Commission that it had been approached by “another party regarding a potential merger transaction.” Sources close to the matter identified the other party as Actavis. The filing referenced that “discussions between us and that party have continued and may lead to negotiations.”

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