NEW YORK, N.Y. – Bill Ackman’s Pershing Square Capital Management, seeking legal cover in its $53 billion takeover bid for Allergan, filed a lawsuit to confirm that its push for a special meeting of shareholders won’t trigger a defensive “poison pill” plan from the Botox maker.
The Irvine, California drugmaker has rejected the bid as underpriced and risky.
Pershing holds a 9.7 per cent stake in Allergan and said that it asked for assurances last week from the company that it would not thwart the meeting through a poison pill, which would allow existing shareholders to snap up more stock at reduced prices.
Pershing says Allergan failed to provide the assurances that it had requested.
Allergan would not comment Friday.