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.

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