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What Ackman’s exit means for Valeant

William A. Ackman’s Pershing Square Capital Management LP sold its 8% stake in Valeant late Monday, losing about $4 billion.

Valeant Pharmaceuticals International Inc. lost its biggest — and perhaps only — cheerleader late Monday.

Shares reacted about the way you’d expect, sliding 12.5% in morning trade Tuesday after William Ackman’s Pershing Square Capital Management LP sold its 8% stake in Valeant VRX, -10.50%

Pershing’s involvement in and push for new management at Valeant makes it “hard to interpret Pershing’s decision at this time as anything but a realization that this turnaround situation may end up taking a lot more time and perhaps have more challenges than originally anticipated,” said BMO Capital Markets analyst Gary Nachman, who rates Valeant market perform and lowered his price target from $19 to $15.

The exit by Ackman and Pershing came on the heels of Valeant’s recent refinancing of some of its debt, the terms of which were hashed out in the last week.

See more: Bill Ackman sells Valeant stake, to step down from board

That’s noteworthy, said Nachman: “This was...


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