NEW YORK (TheStreet) -- Allergan (AGN) shares are down 1.5% in after-hours trading on Friday after one of its largest shareholders criticized the drug company's governance and insisted that any acquisition proposal by Valeant Pharmaceuticals (VRX) be put to a shareholder vote.
Financial services holding company T. Rowe Price (TROW) , the company's third largest shareholder, insists that any takeover bid by Valeant, even an all cash deal that normally does not need shareholder approval, be voted on by Allergan's shareholders.
"The issues to be voted on at the special meeting of shareholders on Dec. 18 are of such importance that they impose a special duty on the board to refrain from approving any significant, irreversible commitments by the company between now and then unless shareholders are offered the opportunity to vote on them," said a T. Rowe Price spokesman.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates ALLERGAN INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLERGAN INC (AGN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."