It Looks Like Bill Ackman Just Got A Huge Ally In His Fight For Botox-Maker Allergan

Reuters is reporting that billionaire hedge fund manager John Paulson has bought 6 million shares of Allergan, or about a 2% stake.

They’re also reporting that Paulson supports an Allergan/Valeant deal.

Paulson, who is a closely-followed fund manager, could be a big ally for Bill Ackman.

Back in April, Ackman, the activist investor who runs $US12 billion Pershing Square Capital Management, teamed up with Valeant Pharmaceuticals to pursue a hostile takeover of Allergan, the maker of Botox.

So far, Allergan has rejected Pershing Square’s/Valeant’s cash-and-stock bids for the company.

Following the Paulson news, shares of of Valeant were last trading up about 4.5% and shares of Allergan were last up about 3%.

Pershing Square owns 28,878,538 shares of Allergan, or about a 10% stake in the company.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.