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Third Point seeks resignation of PDL board chairman
By Lisa Kerner
Charlotte, N.C., Aug. 29 - PDL BioPharma, Inc. investor Third Point LLC demanded that Patrick Gage resign immediately as chairman and member of the board of directors and that PDL focus on a prompt sale of the company.
Third Point, led by Daniel Loeb, made the demand in an Aug. 29 letter to PDL board members that was included in a news release.
Loeb's move follows an Aug. 28 conference call in which Gage "sent a confusing and unwelcome message about PDL's strategy" and failed to communicate that the sale of PDL's commercial operations is one step in exploring a sale, according to the letter.
"Although we are mystified as to why it took so long, we view favorably the belated adoption of Third Point's recommendations: that PDL has agreed to sell its specialty pharmaceuticals business, drastically reduce operating and R&D costs, and retain an investment banker to examine all options to maximize value for shareholders," Loeb's letter said.
Loeb also reiterated a previous offer to have Third Point nominees join PDL's board, "where they can be expected to work constructively with management, other board members and representatives of Merrill Lynch to bring the strategic review to the successful conclusion of maximizing value for all PDL shareholders."
In July, Loeb pushed for the firing of PDL chief executive officer Mark McDade based on his "record of incompetence, egregiously bad business judgment and serious ethical lapses."
It was previously reported in May that Third Point was attempting to oust both McDade and Gage, as well as Jeanmarie Guenot, vice president of the Wilmington, N.C., pharmaceutical company.
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