In 2014, the Allergan Inc. board of directors received a surprise takeover offer from Valeant Pharmaceuticals in alliance with hedge fund activist Bill Ackman's Pershing Square Capital Management. In the unprecedented arrangement between an acquirer as well as a hedge fund activist, Pershing Square had quietly amassed a 9.7% stake in Allergan prior to the Valeant bid, making Pershing Square Allergan's biggest investor.
The case presents pupils with lots of the selections Allergan's managers faced amid challenges to Allergan's government, management, and business model. In particular, the Allergan board must decide whether to pursue a $10 billion acquisition of Salix Pharmaceuticals while under threat of a proxy contest and a special shareholder meeting to vote on replacing the directors with a slate of Allergan more advantageous to the Valeant amalgamation. Allergan would be given a new marketplace that is therapeutic by the planned Salix acquisition but would also make Allergan too big for Valeant to get.
The Allergan Board Under Fire (B) case study solution
PUBLICATION DATE: January 04, 2016 PRODUCT #: 316029-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
Related Case Solutions & Analyses:
Transforming Human Resources at Novartis: The Human Resources Information System (HRIS)
Facebook Folly at Northeast BMW (A)
Ontario Ministry of Small Business & Consumer Services: Managing the Toronto Propane Explosion (B)
Environmental Remediation – A Problem to Manage Globally or Locally?
Almost a Worst-Case Scenario: The Baltimore Tunnel Fire of 2001 (A)
Grutter v. Bollinger: A Synopsis
California Power Crisis
Federal Express: Early History
Posada Amazonas, Spanish Version
Liu Bai: A Chinese Successor’s Dilemma
