Biotech and Pharma

Paulson & Co said to amass large stake in Allergan

A doctor draws Allergan's Botox into a syringe before administering it to a patient at the offices of Marcus Facial Plastic Surgery in Redondo Beach, California.
Patrick T. Fallon | Bloomberg | Getty Images

Hedge fund Paulson & Co has amassed a large stake in Allergan of more than 6 million shares and is supportive of a deal between the Botox maker and Valeant Pharmaceuticals, people familiar with the matter on Wednesday.

The position is expected to rank the prominent U.S. hedge fund, led by John Paulson, among the top 10 to 15 holders of Allergan, according to Thomson Reuters shareholder data as of March 31.

Paulson's new position in Allergan could give Valeant a boost, as the company tries to drum up support from at least 25 percent of Allergan shareholders so that it can call a special meeting.

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Valeant and its ally, Bill Ackman's Pershing Square Capital Management, are seeking to call a meeting to elect new directors to Allergan's board, which could pave the way for a takeover of the company.

Valeant has taken its offer directly to Allergan shareholders after the Botox maker has rejected its latest $53 billion takeover bid, comprised of $72 in cash and 0.83 share of Valeant stock.

Watch: Valeant goes hostile in bid for Allergan