Ackman Takes Stake in Animal-Health Company Zoetis
Activist Could Push Company to Sell Itself to Larger Drug Maker
Activist investor William Ackman has taken a roughly $2 billion stake in Zoetis Inc. and could push the animal-health company to sell itself to a large drug maker like Valeant Pharmaceuticals International Inc., according to people familiar with the matter.
Mr. Ackman’s Pershing Square Capital Management LP has built the stake, which amounts to roughly 10% of Zoetis, with fellow hedge fund Sachem Head Capital Management LP, the people said. Sachem Head is run by Scott Ferguson, a former protégé of Mr. Ackman.
A spokesman for Florham Park, N.J.-based Zoetis, which has a market value of about $20 billion, said the company got a call from Mr. Ackman regarding the investment, but declined to comment on it.