Pershing Square Capital Management has partnered with another hedge fund to build a roughly $2 billion stake in animal health company Zoetis, Dow Jones reported Tuesday. The stake amounts to about 10 percent of Zoetis.
The move could push the company to sell itself to another drug maker , Dow Jones reported citing sources familiar with the subject.
Shares for Zoetis rose almost 7 percent following the news.
Bill Ackman, activist investor and founder of Pershing Square Capital, partnered with Sachem Head Capital Management to build the stake.
Zoetis received a call about the investment from Ackman, Zoetis told CNBC in a statement. The company declined to comment about the details of that conversation.
"We are preparing for our upcoming Investor Day on Tuesday, Nov. 18, and we look forward to sharing more details about the company's business model and growth strategies with the investment community at that time," Zoetis said in the statement.
Zoetis has a market value of roughly $20 billion.
Pershing Square Capital did not immediately respond to CNBC's request for comment.