Third Point Won't Quit on Nabi

One of the largest shareholders of Nabi Pharmaceuticals(NABI Quote - Cramer on NABI - Stock Picks) is pushing for a sale of parts of or the entire company. Shares of the stock climbed 5.8% yesterday after hedge fund Third Point, one of the most vocal dissident shareholders, disclosed in a Securities and Exchange Commission filing that it had increased its stake to 9.5% from 8.7% in April.

As part of his 13D filing, Daniel Loeb, founder of Third Point, attached a highly critical letter sent to the company's board in which he reiterated his commitment to maximize shareholder value. The letter also expressed frustration that management did not engage in some sort of discussion with the hedge fund since its last filing two months ago.

Third Point is not the only hedge fund to push for changes. Knott Partners, which owns 9.6% of the shares, also has agitated for the sale of the company. Nabi Pharmaceuticals, based in Boca Raton, Fla., develops vaccines to treat nicotine addiction, prevent hepatitis C and fight staphylococcus aurus, a bacterium that's the leading cause of hospital infections.

Loeb's letter took the market by surprise. Third Point lost a battle last month after dissident shareholders failed to change the composition of the board at the company's annual meeting. "It's going to be another 11 months before another board vote and that gives management more leverage," says Kevin Degeeter, analyst at H.C. Wainwright & Co.

Degeeter added that after the May meeting, some investors had believed that the dissident shareholders would cut their stakes. Loeb's filing proved them wrong.

"Maybe you thought we would go away or sell our position in frustration," Loeb wrote in his letter. "To the contrary, each day that passes without action by management increases our resolve."

Third Point's commitment to activism, as well as its track record, suggests strongly that Nabi Pharmaceuticals may get sold, partly or as a whole, even if management does not appear responsive at this point.

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