Allergan (AGN) is being relentlessly pursued by Valeant Pharmaceuticals International (VRX) since Apr 2014.
However, the proceedings related to the proposed acquisition are getting murkier by the day.
Allergan recently announced that it has asked the United States District Court for the Central District of California to set an expedited schedule for discovery and a motion for a preliminary injunction against Valeant, Pershing Square Capital Management, and Ackman, for violating federal securities laws.
Through the preliminary injunction motion, Allergan intends to seek an order from the Court to prevent Valeant, Pershing and Ackman and other entities affiliated with them from exercising any rights or benefits associated with Allergan shares that have been acquired unlawfully.
Concurrently, Allergan announced that it will hold a special meeting of stockholders on Dec 18, 2014. Allergan has also set Oct 27, 2014 as record date for stockholders who will be entitled to vote at the meeting.
In its lawsuit dated Aug 1, 2014, Allergan alleged that Valeant, Pershing Square and Ackman violated federal securities laws prohibiting insider trading, engaged in other fraudulent practices, and failed to disclose legally required information.
We remind investors that, on Jun 18, 2014, Valeant announced that it has commenced an exchange offer for the common stock of Allergan, Inc. after the latter rejected its previous offer a couple of times.
Allergan cited that Valeant’s offer substantially undervalues the company, creates significant risks and uncertainties for the stockholders of Allergan, and is not in the best interests of the company and its shareholders.
Allergan currently sports a Zacks Rank #1 (Strong Buy) while Valeant has a Zacks Rank #5 (Strong Sell). We expect investor focus to remain on further updates from the proposed acquisition.
Investors interested in the healthcare sector can consider stocks like Gilead Sciences (GILD) and Ampio Pharma (AMPE). While Gilead Sciences is a Zacks Rank #1 stock, Ampio Pharma is a Zacks Rank #2 (Buy) stock.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment