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A Very Special Shareholder Meeting at Allergan

Well, the Allergan-Valeant-Pershing Square (PS) situation sure gets a lot of air time, both in general and around here (and herehere, and here). With good reason: it has plowed much new ground in corp gov and activist investing. 

 

In the past couple of years, positive trends in activist investing might prompt us to think we've increased our constructive influence over portfolio companies. The sorry, shameful situation at Allergan demonstrates how abundantly bad it can get, and how resourceful, self-interested executives can really screw shareholders. 

 

The latest episode concerns the special shareholder meeting that PS and Valeant have demanded. We explained special meetings before; the process that Allergan imposes defies anything we contemplated in that guide. Investors that seek a special meeting there confront uniquely onerous hurdles, worth exploring. 

 

While complying with the considerable barriers, PS has proposed to relax those same barriers at the special meeting it wishes to convene. Including what to some is a wonky corp gov question on the proposed special meeting agenda may prove to be a brilliant move that wins this battle, and possibly the war, for PS. 


We explore the Allergan special meeting bylaw, and how PS attacks it, in a current blog post.

Recent TAI blog posts

You can find other useful resources at the TAI website, including our research on "Effective Activism, on the Cheap", our new resource guide on activist investing data sourcesour white paper with the basics on activist investing, and our new guides on exempt solicitationconsent solicitation, and special shareholder meetings. 
For further information, or to discuss a specific turnaround situation, please contact:
 
Michael R. Levin
[email protected]
847.830.1479