Valeant, overseen by J. Michael Pearson, quietly strikes an agreement with Pershing allowing the fund company to take a nearly 10 percent stake in Allergan, the pharmaceutical giant
and producer of Botox, to support Valeant’s takeover of the company.
Pershing and Valeant are sued over their Allergan arrangement by investors who sold
the stock without knowledge of the deal while Pershing was buying Allergan shares.
How a Big Wager on Valeant Played Out -
William A. Ackman, a high-profile activist investor
and the founder of the Pershing Square Capital Management hedge fund company, ended his three-year relationship with Valeant Pharmaceuticals International on March 13, taking a $4 billion loss on his investment in the troubled company.
Because of its investment in Allergan, Pershing makes $2.6 billion on the deal.
Fueled by its Allergan gains, Pershing Square records a roughly 40 percent gain for 2014.