Allergan Advised Against Acquisitions Made Without Shareholder Vote

Oct. 2, 2014

It was revealed last month that Allergan is in talks to acquire Salix Pharmaceuticals for cash, in a defensive move against Valeant's hostile bids, but a proxy advisor firm warns that Allergen should put upcoming acquisitons to a shareholder vote.

The deal wouldn't be subject to shareholder approval and would likely be completed prior to the Dec. 18 shareholder meeting where Allergan's investors will decide whether to remove a majority of the board and install a board supported by Valeant and Ackman.

Institutional Shareholder Services Inc. cautions that Allergen is losing credibility with shareholders after rebuffing Valeant's takeover and pursuing other options that specifically frustrate the takeover attempt.

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