Paulson & Co. Pushes For Allergan Merger With Shire: Report

Allergan Inc. should merge with specialty pharmaceutical company Shire Plc , as an alternative to the hostile bid from Valeant Pharmaceuticals , said hedge fund Paulson & Co. according to a report in Reuters, citing two people familiar with the matter. The hedge fund, headed by billionaire John Paulson, has told Allergan's CEO David Pyott it would support a merger with Shire. Paulson is Allergan's third-largest shareholder, while rival hedge fund Pershing Square, headed by Bill Ackman, is the biggest shareholder in the botox maker. Ackman's Pershing Square has been pushing for a Valeant takeover of Allergan. AbbieVie had a $54 billion bid to buy Shire but the deal is close to falling through.