Valeant Steps Up Hostile Takeover Campaign Against Allergan

By Dow Jones Business News, 

By Joseph Walker and Michael Calia

Valeant Pharmaceuticals International Inc., escalating its public campaign to acquire Botox-maker Allergan Inc., threatened to remove members of Allergan's board of directors "if necessary" through a "special meeting."

During a conference call with equity analysts Thursday, Valeant Chief Financial Officer Howard Schiller expressed frustration that Allergan hadn't yet entered negotiations with Valeant and Pershing Square Capital Management, which last month made an unsolicited, $46 billion bid for Allergan. Mr. Schiller said he expects Allergan's board to contact Valeant in the next few weeks, but that in the interim, Valeant is planning more aggressive measures.

"At the appropriate time, if necessary, we will also pursue holding a special meeting to remove some or all of the Allergan board members," Mr. Schiller said during the call.

Valeant and Pershing Square also plan to request a list of Allergan's shareholders and hold a "shareholder referendum" that Mr. Schiller said would show that Allergan stockholders are supportive of Valeant's bid.

"We expect that this referendum will send a clear message to the Allergan board, and to us, that Allergan's shareholders strongly support negotiations between our two companies," Mr. Schiller said.

Allergan said Wednesday that it is evaluating Valeant's offer, but declined to say when it would inform shareholders of how it plans to proceed.

An Allergan spokeswoman declined to comment on Mr. Schiller's remarks.

For the first quarter, Valeant posted a loss of $22.6 million, or seven cents a share, compared with a loss of $ 27.5 million, or nine cents a share, a year earlier.

Revenue rose 76.5% to $1.89 billion, up from $1.07 billion a year ago. Valeant's acquisition of Bausch & Lomb last year helped power the surge in revenue.

Write to Joseph Walker at and Michael Calia at

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