Saturday, 31 January 2015
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Mar 15 2011 | 2:53am ET
In his younger, more activist days, Third Point's Daniel Loeb was renowned for using his pen like a broadsword, cutting apart recalcitrant executives and directors with his inky rapier. But a pen more profane than poison, more coarse than cutting, has emerged in his legal battle with Fairfax Financial.
The e-mails are among the 10 million pages of recently unsealed documents in the Canadian insurer's lawsuit against Third Point, Kynikos Associates and SAC Capital Advisors, among others. Fairfax contends that the hedge funds and others conspired to drive down the company's stock price by spreading false and misleading information in the media.
The saucy e-mails don't necessarily show that, but they do paint Loeb in a less-than-flattering light. In one day alone, he sent a pair of e-mails: one making Fairfax CEO Prem Watsa an offer he'd most certainly refuse, and the other rooting for his demise.
The first went to Exis Capital's Adam Sender, who was also shorting Fairfax. "Prem Watsa bend over the hedge funds have something special for you," Loeb wrote on June 25, 2006. Later that day, he wrote, "die, Prem Die!" to a consultant working for the hedge funds betting against the firm.
Sender, for his part, apparently topped Loeb in sexually explicit language: Reuters would not even reprint his e-mail, which implied that Watsa "would set a record for a certain sexual act involving swallowing if he ever went to jail."
Even more inflammatory, Loeb referred to Watsa as "Hitler himself" in a 2003 instant message. And Fairfax said Loeb also called Watsa, who is of Indian descent, a "schwarze," Yiddish for black.
"It's unfortunate that your readers are going to be viewing this entirely from plaintiff's spin on snippets of dated personal e-mails of Daniel Loeb's, without the context of actual documents in this case," Loeb's lawyer, Bill Carmody, complained to Reuters. Sender told Reuters that the e-mails were "trivial and meaningless."
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…