Ligand Avoids Proxy Fight
The new deal with Third Point allows Daniel S. Loeb, the investment firm's CEO, and two other nominees to join the board effective Dec. 8. While Third Point nominees serve on the board, and for at least six months after the agreement is signed, the firm won't sell shares, solicit proxies or "take other certain stockholder actions."
Ligand also has agreed to recommend the Third Point nominees for election to the board through 2007. In addition, Ligand will pay Third Point up to $475,000 for certain expenses.
Ligand announced on Nov. 18 that it had hired UBS to provide advice on strategic alternatives, which could mean the entire company would be put up for sale. Previously, Third Point had complained about Ligand's performance and strategy. Ligand has had to restate full-year results for 2003 and 2002, as well as partial results for 2001 and 2000.
The company wasn't able to file its 10-K for 2004 until last month, and it hasn't issued formal results for the first three quarters of 2005. Ligand has promised to file the quarterly reports with the SEC this month.The filing delays led to the company's delisting from Nasdaq in September. Ligand now trades on the "pink sheets," and its filing issues prompted an investigation by the SEC. Ligand says that once all of its filings are up to date, it will seek reinstatement for a Nasdaq listing.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV