By Chelsey Dulaney
Zoetis Inc. has agreed to give hedge fund Pershing Square
Capital Management LP a seat on its board, settling a monthslong
dispute with the activist investor.
Pershing Square, headed by William Ackman, took a roughly $2
billion stake in Zoetis last year with possible plans to push the
animal-health company to sell itself to a large drug maker such as
Valeant Pharmaceuticals International Inc., The Wall Street Journal
reported in November.
The Journal reported that Pershing worked with another hedge
fund, Sachem Head Capital Management LP, on building the stake,
which now stands at about 8.3%, according to FactSet.
Zoetis soon after adopted a "poison pill" measure intended to
protect against an unwanted takeover attempt.
Zoetis said Wednesday that both Pershing and Sachem have agreed
to a standstill agreement, while Zoetis has appointed William
Doyle, a member of Pershing's investment team, to its board.
Zoetis said it could also appoint an additional independent
director in the future as part of the agreement with Pershing.
Zoetis, which was spun off from Pfizer Inc., makes vaccines and
treatments for livestock and household pets. With $4.6 billion in
sales in 2013, Zoetis is the largest company in the animal-health
industry.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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