Ackman has taken a roughly $2 billion stake in the company, according to the Wall Street Journal. The investor's Pershing Square Capital Management and the Sachem Head Capital Management hedge fund built the stake in Zoetis that amounts to about 10% of the company.
Ackman could reportedly urge Zoetis to sell itself to a large drug manufacturer such as Valeant Pharmaceuticals (VRX) , according to the paper.
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Zoetis told the Journal that it received a call from Ackman about the investment, but declined to comment on the call.
TheStreet Ratings team rates ZOETIS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZOETIS INC (ZTS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."