The battle for the Allergan shareholder has begun.
Activist investor Bill Ackman alleged in a letter Monday that Allergan Chairman and CEO David Pyott has been conducting “one-on-one” meetings with the Botox maker’s largest shareholders while refusing to allow independent directors to talk with them.
Allergan last week rejected a hostile takeover bid valued at $50 billion by Valeant Pharmaceuticals, supported by Ackman, whose Pershing Square hedge fund holds a 9.7 percent stake in Allergan.
The activist investor, in his letter, said Pyott has a “disabling conflict of interest” because he will likely lose his CEO position if the merger goes through.
The letter was addressed to Michael Gallagher, Allergan’s lead independent director, who refused to have a private conversation with Ackman.
Gallagher wrote back to Ackman, attacking his “blatant attempt to isolate David Pyott.”
Valeant plans to present a revised offer in a May 28 webcast.
In a statement, Allergan said it “maintains an open line of communication with stockholders and welcomes their feedback.”