This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ligand Avoids Proxy Fight

Ligand Pharmaceuticals (LGND - Get Report) and its biggest investor have declared a truce, agreeing to terms before a proxy contest that had been scheduled for next month.

The deal between the company and Third Point LLC enables the investment management and advisory firm to add three members to Ligand's eight-member board and help the company assess its options. The proposal, announced Monday, is similar to one that was previously proposed by Third Point and ignored by Ligand.

The sides issued a joint press release in which Ligand said it was "excited by the opportunity to work closely with the expanded board." Third Point praised Ligand as "a strong company with an extraordinary product pipeline."

However, behind the kind words and behind the scenes, another big shareholder put pressure on San Diego-based Ligand to settle its differences with New York's Third Point. The previously silent shareholder is David M. Knott of Syosset, N.Y., who runs several partnerships and management firms that own 7.26 million shares, or 9.7% of Ligand's stock.

Third Point, through its management company and several funds, owns 7.74 million shares, or just under 10%.

Knott recently told Ligand that although he had bought its stock "solely for investment purposes," he had become convinced that Third Point was correct in its dispute with the company, according to a document filed Dec. 2 with the Securities and Exchange Commission.

Three members of Knott's management team met with Ligand's top executives Nov. 22 to discuss Ligand's strategy. Knott said that if he were forced that day to choose between Ligand's and Third Point's nominees for the board, he would favor Third Point.

Saying he would keep an "open mind," Knott "expressed most emphatically" that he wished to avoid a proxy fight so that Ligand could proceed with its strategic restructuring and shareholders could get the most value from the company.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LGND $72.95 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs