Third Point praises PDL BioPharma's attempts to sell, reduces stake in company

By Lisa Kerner

Charlotte, N.C., Oct. 17 - Third Point LLC's Daniel S. Loeb praised PDL BioPharma, Inc.'s recent announcement that it will actively seek a sale of all or part of the company.

However, in a letter to the board, Loeb said that Third Point is "disappointed that the sale process is still being led by a board that does not include a Third Point representative" and noted that Patrick Gage remains the company's chief executive officer "despite having demonstrated his unsuitability."

As a result, Third Point said it has reduced its position but remains one of PDL's largest shareholders with a 5.1% stake in the company.

On Oct. 1, PDL announced that its chief executive officer and director Mark McDade stepped down and was replaced by L. Patrick Gage as interim CEO. Karen A. Dawes replaced Gage as chairperson.

PDL's strategic transaction process is being led by the finance committee of the company's board along with Merrill Lynch & Co.

It was previously reported that PDL investors including Highland Capital Management, LP and Third Point had sought Gage's resignation, the firing of McDade and a sale of the Wilmington, N.C., pharmaceutical company.

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