Sun-Sentinel.com – Nabi Biopharmaceuticals said Monday it has reached a settlement with New York hedge fund Third Point LLC, which wanted to oust five Nabi board members, including Chief ExecutiveThomas McLain.
“A truce has been called, at least through the shareholder meeting next year,” said Thomas Rathjen, spokesman for the Boca Raton-based drugmaker. Third Point had criticized Nabi, saying board membershave allowed the firm to “burn” large amounts of cash and execute a risky business plan.
Under terms of the agreement, Nabi will pay as much as $250,000 of Third Point’s expenses. The hedge fund, in turn, has agreed not to start a proxy fight before the firm’s annual meeting in May.
The deal calls for Nabi to add two board members, Jason Aryeh and Tim Lynch. Both were nominated by Third Point, which owns 5.75 million or 9.5 percent of Nabi’s nearly 61 million outstandingshares.
