Third Point Wins Again

Nov 13 2006 | 12:23pm ET

For the second time this year, Third Point’s Daniel Loeb has used his activist hedge fund pulpit to win concession from portfolio company Nabi Biopharmaceuticals.

The Boca Raton, Fla.-based Nabi has appointed two Third Point nominees, hedge fund manager Jason Aryeh and NeuroStat Pharmaceuticals CEO Tim Lynch, to its board of directors. The two will also sit on a newly-constituted five-member strategic action committee, which is charged with evaluating strategic options and making recommendations to the board and management.

Nabi will also pay up to $250,000 to New York-based Third Point for its trouble, to cover expenses. Third Point, for its part, will not go ahead with its proxy solicitation, which sought to boot Nabi CEO Thomas McLain and four others from the company’s board.

“Through this agreement, Nabi Biopharmaceuticals and Third Point will avoid a costly and disruptive consent solicitation at a time when the company is exploring a full range of strategic alternatives to enhance shareholder value,” McLain said of the deal.

Loeb was magnanimous in victory. “We are pleased to be able to work constructively with Nabi Pharmaceuticals with the shared goal of enhancing the value of the company,” he said. “We believe that the addition of Jason and Tim to the board and the establishment of the SAC will help achieve our objective of maximizing value for all Nabi shareholders.”

Loeb filed the proxy statement seeking McLain’s head after Nabi refused to open its books to Third Point. Third Point owns about 9.5% of Nabi stock.

In April, Loeb accused McLain of being too close with investment bankers at the company’s financial advisor, Lehman Brothers. Lehman was quickly replaced by Banc of America Securities, much to Loeb’s satisfaction.


In Depth

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.