Courtesy of Benzinga.
Allergan, Inc.'s (NYSE: AGN) board got a scathing letter from activist investor Bill Ackman late Tuesday, accusing the company of wasting resources and destroying shareholder value.
Botox-maker Allergan has rejected a succession of bids from Valeant Pharmaceuticals Intl Inc, including a current offer of $53 billion. Ackman began working on the deal with Valeant in April.
A proxy battle for control of Alllergan's board is slated for a special meeting in December.
Ackman, whose Pershing Square hedge fund is Allergan's largest shareholder, told its board that many of its recent actions are "professionally and personally embarrassing for you."
Directors can "rescue their reputations" only by taking over leadership from Allergan Chief Executive David Pyott, Ackman said.
Among many actions Ackman singled out in a three-page letter was the recent replacement of Allergan's Chief Financial Officer Jeffrey Edwards with an investor relations executive, rather than an experienced public company financial officer.
"The notion that Allergan should execute the largest acquisition in its history led by an investor relations executive is a frightening proposition," Ackerman said.
Allergan opened sharply lower Wednesday and traded recently at $166.56 per share, up 0.26 percent.
Posted-In: Bill AckmanNews Hedge Funds Legal Management General
