Tuesday, May 10, 2016

Reduction in Zoetis stake - Healthcare stock

Bill Ackman’s activist hedge fund, is selling part of its stake in health-care company Zoetis Inc., according to people familiar with the matter.

Pershing Square offered shares in the company for sale Monday, the people said, asking not to be identified as the matter is private. Credit Suisse Group AG and Bank of America Corp. managed the sale, the people said.

A block trade of 16.9 million Zoetis shares was offered Monday at $46.75 to $47.00 a share, a separate person familiar with the process said. Zoetis fell as much as 3 percent in after-market trading. At the top end of the price range, the stake would be valued at about $794 million.

Pershing Square executive disclosed last month that it would not ask Zoetis to re-appoint William Doyle as a director and that his term would expire at the company’s annual shareholder meeting on May 12. Doyle is a member of Pershing Square’s investment team.

In November 2014, Pershing Square disclosed it paid $1.5 billion for an 8.5% stake in the company saying Zoetis could cut costs to boost profits. The stock is up 8.6% since the firm first became involved in the stock.

Wednesday, May 4, 2016

Bill Ackman joins Valeant board in a shakeup with a new CEO

Valeant Pharmaceuticals attempted to put the worst of its problems behind it on Friday, announcing a shakeup of its board and filing a long-awaited annual report where it promised significant changes to its strategy and better oversight of its executives. It blamed senior managers for problems that have sent the stock down more than 80% since August and that put the company at risk of defaulting on its debt. 

The company will also soon have a new CEO, Joseph Papa, Perrigo Co’s former CEO, who was hired this week to take over from Pearson next month and will join the board as chairman. The change also brought activist investor Bill Ackman to the board.

Monday, May 2, 2016

Pershing Square up almost 11 percent for April 2016

Bill Ackman’s Pershing Square is having a rough year mostly due to a long bet on Valeant and a short bet on Herbalife. However, April was a great month for the hedge fund. Ackman is up 10.9 percent through April 26th (full month returns are not yet available), bringing YTD return to negative 17.5 percent.

via www.valuewalk.com/2016/05/suneq-david-einhorn/