Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Valeant Pharmaceuticals Intl Inc (VRX): ValueAct Capital Raises Stake as Jeffrey Ubben is Appointed as Board Director

Jeffrey Ubben’s Valueact Capital Management disclosed today an increase in its exposure to Valeant Pharmaceuticals Intl Inc (NYSE:VRX). The fund added 5,022 shares to its holdings, which now amount to almost 18.93 million shares of Common Stock, worth almost $2.4 billion. This stake accounts for 5.6% of the company’s shares outstanding, and makes of Valueact Capital the largest institutional shareholder at the company, amongst those that we keep track of.

Additionally, on September 25, 2014 Valeant Pharmaceuticals Intl Inc (NYSE:VRX) announced that Jeffrey Ubben has been appointed for its Board of Directors, effective as of October 1, 2014. In the filing, the fund also states its intentions to continue to add to its holdings in the company, depending on market conditions.


The 5,022 shares added to the fund’s holdings are actually Restricted Stock Units obtained directly from Valeant Pharmaceuticals Intl Inc (NYSE:VRX) as compensation for Valueact’s principals’ service on its Board of Directors.

As we reported earlier today, the fund also disclosed a reduction in its activist position in Rockwell Collins, Inc. (NYSE:COL). According to its latest filing, ValueAct owns around 11.19 million shares of the company, down from 12.01 million disclosed in the latest 13F filing. The position amasses 8.3% of in Rockwell Collins, Inc. (NYSE:COL) outstanding common stock. Learn Why Jeff Ubben’s VA Capital Reduced Its Stake in Rockwell Collins, Inc. (NYSE:COL) here.

Other major hedge funds betting on Valeant Pharmaceuticals Intl Inc (NYSE:VRX) are Andreas Halvorsen’s Viking Global and Stephen Mandel’s Lone Pine Capital. Viking Global last disclosed (for the second quarter of 2014) ownership of 11.8 million shares, following a 28% increase in its stake over the second quarter; Lone Pine Capital acknowledged holding 10.8 million shares by the end of the period, which implies a 15% increase in its stake. Their positions are worth more than $1.4 billion and $1.2 billion, respectively.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is up more than 3% today, on the news of Mr. Ubben being appointed to the Board. According to a PR Newswire, Ubben said that

“Valeant has been an important component to ValueAct’s success over the past seven years and we strongly believe in Valeant’s business model and strategy. Valeant has become significantly undervalued on a standalone basis due to recent unjustified attacks on the company.  We are strongly supportive of the Allergan-Valeant combination in light of their perfect strategic fit and the potential to create enormous shareholder value for both companies.”

As the stock price continues to rise, Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s possibilities of acquiring Allergan, Inc. (NYSE:AGN) also grow. The company has offered to pay Allergan shareholders $72 in cash and 0.83 shares of Valeant stock for each Allergan, Inc. (NYSE:AGN) share they hold. As we reported yesterday, Pershing Square Capital Management’s Bill Ackman sent a letter expressing his indignation with the Board refusing to offer the shareholders the right to vote regarding the Valeant acquisition and, instead, considering a highly leveraged acquisition, that of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), without asking the shareholders for their consent.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!