Sunday, September 21, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Allergan sues Valeant, claims fraud in buy attempt

By
From page B6 | August 02, 2014 |

TRENTON, N.J. — Botox and eye-drug maker Allergan is suing a Canadian drugmaker and a hedge fund over their hostile takeover attempt, alleging insider trading and other fraud before their plan became public.

Allergan Inc.’s lawsuit, filed Friday in U.S. District Court in Santa Ana, California, names as plaintiffs drugmaker Valeant Pharmaceuticals International Inc., New York investment and hedge fund firm Pershing Square Capital Management LP and its principal, William Ackerman.

The lawsuit claims debt-laden Valeant, which has bought up more than 100 smaller drug companies since 2008, lined up Pershing Square to finance the deal because it couldn’t on its own. The suit claims Pershing Square quietly bought $3.2 billion worth of shares from unknowing Allergan stockholders between February and April, then reaped a windfall when Valeant publicly proposed buying Allergan in late April, as those shares then jumped about $1.2 billion in value.

Valeant has since been urging Allergan shareholders to tender their shares in exchange for 0.83 shares of Valeant and $72 in cash.

On Friday afternoon, Valeant and Pershing Square issued a statement calling “baseless” Allergan’s claims related to tender offer rules.

“Allergan’s true purpose in bringing the litigation is an attempt to interfere with shareholders’ efforts to call a special meeting,” the statement said.

Allergan, which also sells dry eye drug Restasis, has rejected multiple unsolicited offers from Valeant and Pershing, the latest for more than $53 billion. Allergan said they undervalued the Irvine, California, company and would hurt growth prospects.

In early May, Allergan raised its profit forecast for 2014 after its first-quarter results beat Wall Street expectations. In its continuing attempt to fight off the takeover, Allergan has adopted a “poison pill” measure to block it and then on July 21 said it will cut about 13 percent of its workforce and restructure to focus on its “highest value opportunities.”

That had the ring of a pre-emptive strike, as Valeant has grown by borrowing billions to buy drugmakers with strong products and revenue, then scrapping much of their research to boost short-term profit.

“This case is about the improper and illicit insider-trading scheme hatched in secret by a billionaire hedge fund investor on the one hand, and a public-company serial acquirer on the other hand,” states the lawsuit. “The method the Defendants chose was to operate in secret, flouting key provisions of the federal securities laws designed to protect investors from precisely this type of predatory conduct.”

In early July, Valeant proposed six candidates for Allergan’s nine-member board. Pershing Square has been urging Allergan shareholders to call for a special meeting to consider the proposed takeover, and said Friday it’s hoping in mid-August to deliver requests from holders of enough Allergan shares for that. If that happened and the six candidates were elected, Valeant, Pershing Square and activist investor Ackman would gain control of Allergan.

Valeant, based in Laval, Quebec, said Thursday that it’s committed to the acquisition, but slashed its 2014 profit and revenue forecasts in part because of an asset sale.

In trading Friday, Allergan shares dipped 24 cents to $165.62 and Valeant’s rose 82 cents to $118.21.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

County makes recommendations for crude-by-rail

By Barry Eberling | From Page: A1, 2 Comments | Gallery

 
Hartley House offers look into Vacaville’s past

By Amy Maginnis-Honey | From Page: C1 | Gallery

New toilet paper sizes will wipe me out!

By Brad Stanhope | From Page: A2, 8 Comments

 
Coastal Cleanup helps get rid of trash in area

By Susan Hiland | From Page: A3, 1 Comment | Gallery

Travis teachers bring creativity to Shakespeare

By Susan Winlow | From Page: A3

 
Olympians to participate in swim Lap-a-Thon

By Amy Maginnis-Honey | From Page: A3

Circle of Friends director to speak in Fairfield

By Amy Maginnis-Honey | From Page: A3

 
Be alert to stroke warning signs

By Marilyn Ranson | From Page: C4

Recovery community works for lifelong sobriety

By Amy Maginnis-Honey | From Page: A4 | Gallery

 
Musical merry-go-round at Jazz Festival

By Amy Maginnis-Honey | From Page: A5 | Gallery

Deadline looms for lobster boil tickets

By Glen Faison | From Page: A5

 
 
Seven Artisans opens tasting room

By Barry Eberling | From Page: B7 | Gallery

BABA makes big spash

By Bud Stevenson | From Page: B7

 
Old Kmart site sees signs of new life

By Brian Miller and Karl Dumas | From Page: B8, 31 Comments | Gallery

 
Airmen with local ties finish basic training

By Nick DeCicco | From Page: B10

Fairfield police log: Sept. 19, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: Sept. 19, 2014

By Susan Hiland | From Page: A12

.

US / World

Potential push for Obama to expand military effort

By The Associated Press | From Page: A1, 1 Comment

 
Teams assess damage as California wildfire burns

By The Associated Press | From Page: A1

McInerney, Duka help Impact beat Earthquakes

By The Associated Press | From Page: B3

 
Old pets, new chances: The case for senior adoption

By Mcclatchy-Tribune News Service | From Page: C4

Jailed, some mentally ill inmates land in lockdown

By The Associated Press | From Page: A6

 
Custer youngest winner at 16 in NASCAR series

By The Associated Press | From Page: B6 | Gallery

Retro-hip barber is growing an ‘empire’ by staying on the cutting edge

By Mcclatchy-Tribune News Service | From Page: C6

 
Tense hunt in trooper ambush case hits 8 days

By The Associated Press | From Page: A7

Tour ship runs aground by NYC’s Statue of Liberty

By The Associated Press | From Page: A7

 
Chrysler recalling nearly 189,000 SUVs

By The Associated Press | From Page: A10, 1 Comment

Fire captain injured in ice bucket challenge dies

By The Associated Press | From Page: A10, 1 Comment

 
More than 1K people search for missing UVa student

By The Associated Press | From Page: A10

Second man arrested trying to enter White House

By The Associated Press | From Page: A10

 
Pope chooses a moderate for Chicago archbishop

By The Associated Press | From Page: A10, 4 Comments | Gallery

Astronauts getting 3-D printer at space station

By The Associated Press | From Page: A10 | Gallery

 
NATO chief: Ukraine has cease-fire ‘in name only’

By The Associated Press | From Page: A11

Kurdish fighters head to Syria to face militants

By The Associated Press | From Page: A11

 
Turkish hostages freed, but questions linger

By The Associated Press | From Page: A11

Sierra Leone staggers in Ebola isolation effort

By The Associated Press | From Page: A11 | Gallery

 
El-Sissi ready to back anti-IS fight

By The Associated Press | From Page: A11 | Gallery

Polly Bergen, versatile actress, singer dies at 84

By The Associated Press | From Page: A12

 
.

Opinion

Sunset Animal Hospital is the best

By Letter to the Editor | From Page: A8

 
Sound off for Sept. 21, 2014

By Daily Republic | From Page: A8

 
New car’s fuel mileage accuracy put to the test

By Glen Faison | From Page: A8

 
Stores miss bus on public transit

By Letter to the Editor | From Page: A8, 7 Comments

 
Will they ever get the message?

By Rod Keck | From Page: A9, 8 Comments

 
.

Living

Community Calendar: Sept. 21, 2014

By Susan Hiland | From Page: A2

 
Today in History: Sept. 21, 2014

By The Associated Press | From Page: A2

St. Paul pastor’s pulpit? A food truck

By The Associated Press | From Page: C3 | Gallery

 
There is no message of hatred of violence in Christianity

By The Rev. Rick L. Stonestreet | From Page: C3, 7 Comments

Horoscopes: Sept. 21, 2014

By Holiday Mathis | From Page: C4

 
My child’s father and I worked things out – but now I’m not so sure

By Kathy Mitchell and Marcy Sugar | From Page: C4

.

Entertainment

PUBLISHERS WEEKLY BEST-SELLERS

By The Associated Press | From Page: C2

 
Author says Christian novel plagiarized, sex added

By The Associated Press | From Page: C2 | Gallery

Springsteen picture book out in November

By The Associated Press | From Page: C2

 
Erdrich wins lifetime achievement literary prize

By The Associated Press | From Page: C2

Designer Donna Karan memoir expected next year

By The Associated Press | From Page: C2

 
TVGrid

By Daily Republic Syndicated Content | From Page: B11

.

Sports

Cardinals look to shake off distraction vs. 49ers

By The Associated Press | From Page: B1 | Gallery

 
Cashner, Padres beat Giants 3-2

By The Associated Press | From Page: B1

Prep boys soccer preview: Indians, Vikings off to fast start

By Paul Farmer | From Page: B1 | Gallery

 
Patriots big favorites vs. Raiders despite mediocre start

By The Associated Press | From Page: B1 | Gallery

Williams beats A’s for third time with third team

By The Associated Press | From Page: B1 | Gallery

 
College football Top 25

By The Associated Press | From Page: B3

No. 1 Florida St survives against No. 22 Clemson

By The Associated Press | From Page: B3 | Gallery

 
Sprint car driver killed in Wisconsin

By The Associated Press | From Page: B3

Vacaville Christian volleyball team falls in playoffs

By Daily Republic staff | From Page: B3

 
Schumacher, Hagan win rain-delayed Carolina event

By The Associated Press | From Page: B3

Travis Bowl results

By Daily Republic | From Page: B4

 
Mi Jung Hur, Paula Reto share lead in Alabama

By The Associated Press | From Page: B4 | Gallery

Stars Recreation results

By Daily Republic | From Page: B4

 
Estimated 7,000 fans trade in Ray Rice jerseys

By The Associated Press | From Page: B4 | Gallery

This date in sports history for Sunday, Sept. 21, 2014

By The Associated Press | From Page: B5

 
Sports on TV for Sunday, Sept. 21, 2014

By Paul Farmer | From Page: B5

Gaughan snatches Nationwide win at Kentucky

By The Associated Press | From Page: B6 | Gallery

 
Harvick dismisses wins as key to Cup title

By The Associated Press | From Page: B6 | Gallery

.

Business

Extended warranties a big sell. Are they worth it?

By The Associated Press | From Page: B7 | Gallery

 
Recalls this week: fire alarm bases, swings

By The Associated Press | From Page: B8

US tobacco growers brace for tougher competition

By The Associated Press | From Page: B12 | Gallery

 
Marijuana industry battling stoner stereotypes

By The Associated Press | From Page: B12 | Gallery

.

Obituaries

George Junior Rhode

By Nancy Green | From Page: A4

 
.

Comics