VRX Bausch Health Cos

   (FROM THE WALL STREET JOURNAL 11/24/15) 
   By Lauren Pollock 

William Ackman's Pershing Square Capital Management LP disclosed an increased 9.9% stake in Valeant Pharmaceuticals International Inc., a move that comes after the hedge-fund manager said he had taken advantage of the beaten-down market for the stock to build up his position.

Mr. Ackman has vigorously defended his multibillion-dollar investment in the pharmaceuticals company, which has come under siege over its accounting and sales tactics.

Valeant, based in Canada, has defended its accounting and has said it has found no evidence of illegality. It also has formed a board committee to look at its relationship, which it is terminating, with a specialty pharmacy that distributed its drugs.

Pershing Square's latest acquisitions are primarily shares underlying call options. The fund bought 2.1 million common shares and call options tied to 12.5 million shares for a total of about $475 million. It also sold options, garnering $169 million.

The fund now beneficially owns 34.1 million shares, which include 21.6 million common shares, along with the 12.5 million shares underlying options. As of Monday's close at $87.41, the investment is valued at about $3 billion.

Its previous position was 5.7%, according to FactSet.

Mr. Ackman told CNBC in late October that he had bought the two million shares, a vote of confidence in the company as its shares decline.

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(END) Dow Jones Newswires

November 24, 2015 02:47 ET (07:47 GMT)

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