- Preparing for and Addressing Activist Shareholders: The Valeant/Pershing Square Bid for Allergan
Public companies are increasingly being targeted by activist shareholders who applied some novel strategies and experienced some stunning successes in 2014. This high level of shareholder activism will likely continue throughout 2015, making it important for public companies to anticipate potential activism and develop and understand the strategies for responding to activist shareholders.
This presentation will provide an overview of the changing landscape of shareholder activism, and will use Valeant's and Pershing Square's bid for Allergan as a case study for analyzing several key issues, including use of the federal securities laws in an attempt to defeat an activist shareholder. Specific topics to be covered include:
- The increase in shareholder activism throughout 2014;
- Steps boards and management should take even before being contacted by an activist shareholder;
- Valeant's and Pershing Square's novel "co-bidder" structure; and
- How the federal securities laws can be used during a dispute with a shareholder activist.