Highland Capital Wants PDL BioPharma To Hire New Advisor

In an amended 13D filing today on PDL BioPharma (Nasdaq: PDLI) Wednesday, 7% holder Highland Capital Management, L.P. disclosed a letter to the company saying they are closely monitoring the sale process and recommended the Board of Directors engage a new financial advisor with substantial experience and competence to maximize the value the company's pharmaceutical royalty stream asset. The firm said the company's current advisor, Merrill Lynch, is not qualified.

Highland Capital said Merrill Lynch appears incapable or unwilling to market the royalty stream to all appropriate buyers, which they believe will impair the value of the asset. Highland Capital named a number of firms, including themselves, that desire to be included in the auction.

Highland Capital said, "The recent sell down by your most vocal shareholder should not invite the Board of Directors to ignore its fiduciary duty to the company's owners." Highland is clearly pointing to Daniel Loeb's Third Point LLC, which recently sold its entire stake in the PDL.

Shares of PDL are up 2% top $18.39 today.