Appaloosa LP and John Chevedden announced today that, following discussions between Appaloosa and Mr. Chevedden regarding their respective shareholder proposals calling for Allergan plc to separate the roles of Chairman and Chief Executive Officer, Mr. Chevedden has determined to withdraw his proposal and support Appaloosas proposal.
Mr. Chevedden said, The Appaloosa proposal is the better proposal for Allergan shareholders because it contemplates immediate implementation upon approval by shareholders.
David Tepper, President of Appaloosa, said, John Chevedden has worked tirelessly for many years to advance important corporate governance initiatives and we are gratified that he shares our view regarding the need for an immediate separation of the Chairman and CEO roles at Allergan. Mr. Cheveddens decision to withdraw his proposal will eliminate unnecessary confusion, enabling shareholders to focus on effecting meaningful changes to the leadership structure at Allergan as a first step to arresting the companys decline.
Mr. Chevedden noted that his proposals on this same topic won more than 42% of the for and against votes at both the Allergan 2016 and 2018 annual general meetings. These meetings were held in Ireland by Allergan, which Mr. Chevedden believes discouraged shareholder participation.
Funds advised by Appaloosa LP (Appaloosa) have submitted to Allergan plc (Allergan) a shareholder proposal to separate the roles of Chairman and Chief Executive Officer to be considered at Allergans 2019 annual general meeting of shareholders. This communication is not a solicitation of proxies and Appaloosa is not seeking authority to vote any proxy in connection with Allergans annual general meeting. Shareholders should NOT send us any proxy card. Following the dissemination of Allergans proxy materials for the annual general meeting, shareholders will be able to vote for Appaloosas shareholder proposal by executing and returning the form of proxy card furnished by Allergan in accordance with the procedures set forth in Allergans proxy materials. Shareholders with questions may contact Okapi Partners, Appaloosas Information Agent, toll free in the U.S. and Canada at (877) 869-0171 or at +1 (212) 297-0720 outside of the U.S. or Canada.
Jonathan Gasthalter/Nathaniel Garnick