ValueAct's Ubben says firm will not seek new term on Valeant board

Hedge fund manager Jeffrey Ubben, whose firm ValueAct sits on the board of Valeant Pharmaceuticals, said on Tuesday that the hedge fund will not seek reelection on the board in order to devote its time on Microsoft Corp's board.

Ubben, ValueAct's chief investment officer and chief executive officer, said that he thinks the proposed tie up between Valeant and Allergan, which is being pushed by fellow activist hedge fund manager William Ackman, is the right thing for both companies.

"We have a blocking vote. It is helpful to get a hostile deal done," Ubben said on the sidelines at a conference in New York. Valeant had been pursuing Allergan for a year, Ubben said.

ValueAct partner Mason Morfit sits on the Valeant board but is not running for re-election in order to spend more time with Microsoft after the San Francisco-based hedge fund joined Microsoft's board last month.

ValueAct was instrumental in the decision to replace Steve Ballmer as chief executive officer. Satya Nadella became CEO earlier this year.

(Writing by Svea Herbst-Bayliss; Editing by Bernard Orr)