Saturday, 28 March 2015
Last updated 1 day ago
Nov 5 2007 | 3:39pm ET
In response to what it says are insufficient measures taken by portfolio company PDL BioPharma, activist hedge fund Third Point has cut its stake in the company almost in half. But another activist hedge fund with similar demands has stepped up its pressure on the Fremont, Calif.-based company.
In a letter to PDL’s board, Daniel Loeb, founder of the New York-based hedge fund, said he had cut his fund’s stake from 9.7% to 5.1% “in light of your continuing refusal to provide us with a voice in the company’s affairs through a board seat.” Loeb has long sought a sale of PDL, and said he was “encouraged” by the board’s announcement it would actively seek such a sale. But he ripped Chairman Patrick Gage, who has served as interim CEO since former CEO and Loeb nemesis Mark McDade resigned this summer, saying he has “demonstrated his unsuitability” for the post.
Unfortunately for the maligned Gage and his cohorts on the board, Loeb’s retreat coincided with the advance of another activist seeking major changes at the company. Dallas-based Highland Capital Management took a 5.2% stake in PDL over the past few months, and fired off a letter in September—filed with the Securities and Exchange Commission last week—with its own set of strident demands.
Highland President Jim Dondero doesn’t just want Gage to give up the CEO’s role; he wants him out entirely, demanding that he resign as chairman, and calling on the board to name former chairman and CEO Laurence Korn to succeed him. In addition, Highland wants an independent director named to fill a vacancy on the board, and for the process of selling the company to be expedited.
“We have attempted to, and will remain available to, discuss the recommendations put forth in this letter,” Dondero assured. But he went on, “That said, we believe the time for dialogue has ended and encourage each of you to honor your fiduciary obligations to the company and its shareholders by expeditiously implementing our recommendations in order to protect shareholder value.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…