Valeant Pharmaceuticals International Inc (>> Valeant Pharmaceuticals Intl Inc) said it cut its stake in Allergan Inc (>> Allergan, Inc.) to 0.1 percent, three days after Actavis Plc (>> Actavis PLC) trumped its offer for the Botox maker.

Pershing Square Capital Management informed Valeant that PS Fund 1 sold all of its 2.2 million shares in Allergan allocated to Valeant USA, Valeant said in a regulatory filing.

PS Fund 1 is a shell fund that was set up by Valeant and Pershing Square to act as a joint acquisition vehicle. Combined, the two parties had held a 9.7 percent stake in Allergan.

Pershing Square, run by billionaire William Ackman, had been working with Valeant for a deal for the Canadian drugmaker to buy Allergan.

Dublin-based Actavis offered $219 per share in cash and stock, amounting to billions more than Canada's Valeant was prepared to pay.

(Reporting By Subrat Patnaik and Narottam Medhora in Bangalore; Editing by Ken Wills)

Stocks treated in this article : Allergan, Inc., Valeant Pharmaceuticals Intl Inc, Actavis PLC