Allergan has made a small measure of peace with Valeant Pharmaceuticals and Pershing Square Capital Management, the unlikely pair attempting a $53 billion hostile takeover of the Botox maker.
On Monday night, the three companies agreed that Allergan would hold a planned special meeting on Dec. 18. At that meeting, Allergan shareholders will have the chance to vote out a majority of the companyâs board, a move that could lead to a takeover by Valeant and Pershing Square.
The meeting was already set for that date, but there was a chance it could have been delayed because of litigation related to the takeover effort.
As part of the agreement, Valeant and Pershing Square will drop pending litigation against Allergan in Delaware, where they had sued to force the meeting, claiming that the Botox makerâs bylaws were unduly onerous.
âTodayâs announcement eliminates the distraction and cost of unnecessary litigation over the companyâs bylaws and underscores the Allergan board of directorsâ long-standing commitment to providing stockholders with a forum to express their opinion on the value proposition offered by Valeant,â Allergan said in a statement.
But the companies have hardly backed down from their contentious battle. Allergan is still suing Valeant and Pershing Square in California, alleging that the companies engaged in insider trading before announcing their bid. And as the Allergan meeting draws near, the two sides are likely to ramp up the rhetoric as they lobby for their favored directors.
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