Third Point Sells Out Of PDL

Nov 12 2007 | 11:43am ET

Daniel Loeb is flying the white flag.

Loeb's activist hedge fund shop Third Point has dumped its remaining stake in PDL BioPharma, selling more than six million shares of the Fremont, Calif.-based pharmaceutical between Oct. 30 and Nov. 9. Loeb had unsuccessfully sought a board seat, though he said he was “encouraged” by the company’s decision to seek a sale.

But, in a letter to PDL’s board last month explaining why he had halved his firm’s stake to 5.1%, he ripped board chairman and interim CEO Patrick Gage for his “unsuitability” to lead the company—in addition to the board’s “continuing refusal to provide us with a voice in the company’s affairs through a board seat.”

Loeb sold 4.9 million shares in the last three days of last week alone.

But PDL is not out of the activist hedge fund woods: As Third Point sold off its entire stake in the company, Dallas-based Highland Capital Management has built up a 5.2% stake in PDL over the past few months, and is calling for many of the same changes Third Point sought.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note