Nabi Bipharmaceuticals Finally Buckles: Activist Shareholders to Join Board

This morning, Nabi Biopharmaceuticals (NABI) and dissident shareholder Third Point LLC announced that they have reached a settlement relating to a potential consent solicitation.

Under the deal, Nabi Biopharmaceuticals has appointed two Third Point nominees, Jason Aryeh, founder and general partner of JALAA Equities LP and Tim Lynch, president and CEO of NeuroStat Pharmaceuticals Inc. to the company's board of directors. In addition, Nabi Biopharmaceuticals will establish a strategic action committee to continue the company's previously announced process of exploring strategic alternatives. The Third Point nominees' will sit on the five member committee.

As part of the settlement, Nabi Biopharmaceuticals has agreed to pay up to $250,000 of Third Point's expenses and Third Point has agreed that it will not commence a consent solicitation or a proxy contest prior to the company's 2007 annual meeting of shareholders.

Third Point CEO, Daniel S. Loeb, said, "We are pleased to be able to work constructively with Nabi Biopharmaceuticals with the shared goal of enhancing the value of the company."

Related: Nabi Biopharmaceuticals Spars With Shareholders Over Board Composition • Nabi Biopharm Holder Third Point To Pursue Consent Solicitation Toward Ousting Directors • Nabi Biopharm's Activist Holder Wants Chairman Ousted • Daniel Loeb Wants Nabi CEO's Head