Bill Ackman's Pershing Square Capital Management sold more than 3.4 million shares of Valeant Pharmaceuticals on Tuesday, an SEC filing showed.
The company said it sold the shares to generate a tax loss for its investors. The Pershing Square and Pershing Square II accounts sold 3,359,178 shares and 117,512 shares, respectively. The company's two offshore funds, PS International and PSH, did not sell any share of Valeant.
The sell-off cut Pershing's stake in the company to 7.8 percent as of Monday from 9 percent.
Valeant shares fell slightly in after-hours trade. The company finished the day up 0.68 percent, closing at $14.78