Ackman says Pyott has crippling conflict of interest in merger talks

In a letter to Lead Director Michael R. Gallagher, Hedge fund honcho and owner of ~10% of Allergan (AGN +0.1%) Bill Ackman says Chairman and CEO David Pyott has a disabling conflict of interest standing in the way of progress in the merger negotiations. He asserts that Mr. Pyott cannot independently represent Allergan in considering Valeant's (VRX +0.1%) bid because he will lose his job if the deal goes through.

He says the AGN board erred in not meeting with VRX management before rejecting its offer and designating Mr. Pyott as the only member of the BOD authorized to speak with shareholders. He accuses Mr. Pyott of acting improperly by criticizing both VRX and Pershing Square in meetings with institutional shareholders.

Mr. Ackman believes that a majority of AGN shareholders favor the deal.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs