The heat is being applied to Allergan, Inc. (NYSE:AGN) by a hedge fund executive other than Pershing Square’s William Ackman. Reuters is reporting that John Paulson is among the top 15 holders of Allergan stock.

Allergan

Paulson has built an exposure to Allergan

Paulson’s hedge fund, Paulson & Company, has build an exposure to Allergan, Inc. (NYSE:AGN) of more than six million shares – shares it plans to vote in favor of an unsolicited buyout offer from Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), Reuters is reporting, citing “people familiar with the matter.”

At issue is a vote to replace the existing Allergan, Inc. (NYSE:AGN) board with board members favoring a deal with Allergan. If Ackman and his alley Valeant can build a collation of at least 25 percent of Allergan shareholders who support the deal, they can call for a special meeting and bring the matter to a vote. Allergan has 297 million shares outstanding, each share has a vote in the matter. Ackman has just under a ten percent stake in the firm and between Ackman and Paulson they are close to half of the 25 percent needed to call a vote.

Peter Mann: Allergan’s takeover by Valeant is its best interest

Yesterday ValueWalk reported that a major Allergan shareholder, Portfolio manager Peter Mann of Gluskin Sheff, said he thinks a takeover by Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX) is in Allergan, Inc. (NYSE:AGN)’s best interests.

The battle between Valeant and Allergan has heated up recently.  As previously reported in ValueWalk, Allergan, Inc. board said the Valeant Pharmaceuticals Intl Inc offer should be rejected because it undervalues the company and creates significant risks and uncertainties for Allergan shareholders. Allergan had previously attacked Valeant’s $52.7 billion offer largely based on the price of Valeant shares, which it said was inflated, as reported in ValueWalk. Allergan also had issues with Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX)’s business model, which reduces medical research and development as well as other management costs while leverages sales and marketing efficiencies.

“Allergan’s rejection of Valeant’s proposal is based on beliefs and assumptions about our business that are not supported by the facts. We are confident that Allergan’s stockholders support our offer, which even at Valeant’s current stock price provides an almost 50% premium to where Allergan’s stock was trading on an unaffected basis,” said Valeant spokesperson Laura Little said in a statement to ValueWalk earlier this week.