Shares of Zoetis Inc. rallied Tuesday following a report that activist investor Bill Ackman has acquired a 10% stake in the animal-health products company. Zoetis shares rose 7.9% to $43.33 in recent activity. Ackman, along with hedge fund Sachem Head Capital Management, acquired the $2 billion stake in hopes of prompting the company to sell itself to a large drug maker like Valeant Pharmaceuticals International Inc. , according to The Wall Street Journal, citing people familiar with the matter. Pfizer Inc. spun off Zoetis in May 2013.
Copyright © 2014 MarketWatch, Inc.
Continue Reading Below