Allergan, Inc. (AGN)’s Top Shareholders Sold The Stock Amid Takeover Talks

Allergan, Inc. (NYSE:AGN)‘s stock saw a massive upside in April when it was revealed that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) was trying to buy the company with the help of Billionaire activist hedge fund manager Bill Ackman. The stock still trades higher than it used to trade in mid-April, even though in the period between April till now Allergan, Inc. (NYSE:AGN) has tried its best to stop getting acquired. Allergan, Inc. (NYSE:AGN) has also gotten into a messy fight with Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Ackman’s hedge fund, Pershing Square Capital Management LP, forcing the SEC to launch an investigation against both for insider trading. But, another development that happened between mid April and June 30, was that 68 of the top 100 Allergan, Inc. (NYSE:AGN)’s shareholders have either sold down their entire stake in the company or reduced it considerably, as the latest SEC 13F filing shows.

David Faber reported on the recent changes concerning Allergan, Inc. (NYSE:AGN) on CNBC recently.

“[…] Typically, you do get a significant change in the underlying share base of the company that is being sought, in this case that being Allergan, Inc. (NYSE:AGN) and the 13F show, again as of June 30th that that has taken place. The likes of CapRe [Capital Research Global Investors] which once owned over 18 million shares in the company owns nothing, it sold all of it […],” Faber said.

Faber then mentioned other major funds that have either sold all of their stake or have reduced their exposure considerably. He also mentioned that the top 100 shareholders of Allergan, Inc. (NYSE:AGN) have reduced their stakes in the company from what represented about 42% of the outstanding shares to 23% and they have been replaced by event-driven funds.

“[…] Bill Ackman owns 9.7% of the stock, then you would need an additional, lets call it, 15 plus percent to be able to call that meeting [Special meeting of Allergan, Inc. (NYSE:AGN) shareholders]. What I am hearing is at this point, they are likely to receive at least 30% or more of the shares needed to call that special meeting […],” Faber added.

Disclosure: None