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Hedge fund Appaloosa unimpressed by Allergan board promises

Published 03/25/2019, 08:02 AM
Updated 03/25/2019, 08:05 AM
© Reuters. The Allergan logo is seen in this photo illustration

(Reuters) - Activist investor Appaloosa LP responded to proposed concessions from the board of Allergan (NYSE:AGN) Plc by saying it had done everything "except what needs to be done" and calling on other investors to take further "disruptive" steps to change the company.

The hedge fund, led by billionaire David Tepper, has been pressing Allergan since last year to separate the roles of CEO and chairman or potentially sell or merge the company.

Allergan on Friday agreed to split its chairman and chief executive roles, but only at its next scheduled leadership change.

"Unless the board intends to make a CEO transition in the very near-term, these measures are no more than a meaningless series of gestures intended to preserve the current system of lax oversight and further entrench management," Appaloosa said in a statement http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=

"The status quo is unacceptable and disruptive measures are necessary for shareholders to convince this board that it must make the decisions required to fix the company or, if they are unwilling, sell it to a more capable acquirer or merger partner."

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