William A. Ackman, the billionaire founder of the hedge fund Pershing Square Capital Management, is paring back a stake in a health care stock. But it is not the one that has been generating lots of negative headlines.
On Monday, Pershing set out to sell 16.85 million shares in Zoetis, the former animal health arm of Pfizer, for a price range of $46.75 to $47 per share, according to two people with direct knowledge of the deal who requested anonymity because they are not authorized to speak publicly.
The transaction is expected to be valued around $800 million and will be managed by Bank of America Merrill Lynch and Credit Suisse. Pershing will continue to own 25 million shares in the company.
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The hedge fund paid $1.5 billion for an 8.5 percent stake in Zoetis in November 2014, according a filing with the Securities and Exchange Commission. The stock has since gained 8.6 percent. Last year, Zoetis added William F. Doyle, a representative for Pershing Square, to its board of directors. On April 22, Pershing Square said Mr. Doyle, would step down from the board of Zoetis this week.