Third Point increases stake in Phoenix

By Angela McDaniels

Tacoma, Wash., July 18 - Phoenix Cos., Inc. investors led by Third Point LLC purchased 4,999,000 shares of the company's stock between May 20 and July 18, according to a schedule 13D filing with the Securities and Exchange Commission.

The shares were purchased for $7.55 to $10.27 each.

Following the purchases, the investor group beneficially owns 16,233,200 shares, or 14.1%, of the company's common stock.

On July 11, Third Point said it doesn't support the company's chairman and chief executive officer, Dona Young, or the current direction set by the board of directors. The statement was made in a schedule 13D filing.

The investor does not intend to support Young's re-election to the board, scheduled for 2010, or any director who approves the renewal of Young's employment agreement, which expires Dec. 31.

Third Point noted it will support the re-election of any board members who support combining Phoenix's operations with those of another insurance company.

At the time, two members of the investor group reported beneficial ownership of 7.75 million shares, or 6.8%, of the Hartford, Conn., insurance company. On July 18, the number of shares owned by these two members was 10 million, giving them an 8.7% stake.

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