Allergan (NYSE:AGN) may have been forced to host a special shareholder meeting at the persistence of hostile acquirers Valeant Pharmaceuticals (NYSE:VRX, TSE:VRX) and Pershing Square Capital Management, but the company isn’t done fighting.
Valeant and Pershing agreed to drop their lawsuits since the meeting date was set, but Allergan’s still looking to prevent the companies from voting their shares during the meeting. Allergan was forced to schedule the special meeting after Valeant and Pershing hand-delivered documents to Allergan headquarters showing that they had garnered enough support from other shareholders.
Allergan will take on Valeant and Pershing in the U.S. District Court for the Central District of California on October 28, 2014. The special shareholder meeting is scheduled for December 18, 2014.
Allergan has asked the court for accelerated proceedings in its motion for a preliminary injunction against Valeant, Pershing and Pershing manager William Ackman, claiming the activist investors violated insider trading laws and reaped a $1 billion benefit as a result. Pershing acquired 9.7% of AGN’s shares in April
"Allergan continues to believe that stockholders should have the opportunity to make decisions regarding their investment in the Company based on compliant, full and fair disclosures, and to ensure that any stockholders voting on corporate matters acquired their shares in accordance with the law," according to an Allergan statement issued this week. "If Allergan’s motion is granted, the injunction would prevent Valeant, Pershing Square, and William A. Ackman from voting their shares at any meeting of stockholders."
Allergan has been fighting against the meeting and staving off Valeant’s hostile takeover efforts for weeks, but finally ceded late last month.
AGN shares gained modestly today, closing up 1% to $170.20 before dropping to $169.54 in after-hours trading as of about 4:10 p.m. EST. The stock has gained 53.2% since the start of the year.