Third Point Slashes PDL BioPharma Stake
Thursday October 18, 11:11 am ET
Activist Investor Third Point Cuts PDL BioPharma Stake, Criticizes Leadership
NEW YORK (AP) -- Third Point LLC has slashed its stake in PDL BioPharma Inc., citing the biopharmaceutical company's refusal to grant the activist investor a board seat.
PDL shares dropped 85 cents, or 4 percent, $20.40 in morning trading. The stock has traded between $18.01 and $27.98 during the past 52 weeks.
In a Securities and Exchange Commission filing Thursday, Third Point said it cut its stake in the Fremont, Calif.-based company to 6 million shares, or 5.1 percent, from 11.3 million shares, or 9.7 percent.
In a letter to the board, Third Point Chief Executive Daniel S. Loeb said the shareholder was "encouraged" by the board's plan to sell the company, which was announced on Oct. 1, but decried its lack of inclusion in the process.
"Despite these positive developments," Loeb wrote, "we are disappointed that the sale process is still being led by a board that does not include a Third Point representative, and that Patrick Gage remains the company's CEO, despite having demonstrated his unsuitability."
Gage has served as interim CEO since October, when the company's former CEO, Mark McDade, resigned after repeated demands from Third Point. The shareholder criticized McDade for allegedly dismissing an offer from a large pharmaceutical company, as well as for missing earnings and sales projections.
Loeb said the shareholder will consider its options as developments occur. |
