Ackman's Pershing Buys More Of Valeant
November 24 2015 - 3:02AM
Dow Jones News
(FROM THE WALL STREET JOURNAL 11/24/15)
By Lauren Pollock
William Ackman's Pershing Square Capital Management LP disclosed
an increased 9.9% stake in Valeant Pharmaceuticals International
Inc., a move that comes after the hedge-fund manager said he had
taken advantage of the beaten-down market for the stock to build up
his position.
Mr. Ackman has vigorously defended his multibillion-dollar
investment in the pharmaceuticals company, which has come under
siege over its accounting and sales tactics.
Valeant, based in Canada, has defended its accounting and has
said it has found no evidence of illegality. It also has formed a
board committee to look at its relationship, which it is
terminating, with a specialty pharmacy that distributed its
drugs.
Pershing Square's latest acquisitions are primarily shares
underlying call options. The fund bought 2.1 million common shares
and call options tied to 12.5 million shares for a total of about
$475 million. It also sold options, garnering $169 million.
The fund now beneficially owns 34.1 million shares, which
include 21.6 million common shares, along with the 12.5 million
shares underlying options. As of Monday's close at $87.41, the
investment is valued at about $3 billion.
Its previous position was 5.7%, according to FactSet.
Mr. Ackman told CNBC in late October that he had bought the two
million shares, a vote of confidence in the company as its shares
decline.
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(END) Dow Jones Newswires
November 24, 2015 02:47 ET (07:47 GMT)
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