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Third Point puts pressure on NABI

The New York-based hedge fund Third Point has attempted to intervene in the running of NABI Pharmaceuticals, a company in which it invests.

The hedge fund, which currently has an estimated $4 billion under management, has urged the pharmaceuticals company to terminate its relationship with Lehman Brothers, its current financial advisors.

Managers at Third Point believe that the company has made strategic mistakes in their dealings, with Lehman Brothers partly to blame, as their "long-standing relationship will prevent the company from receiving objective advice," said Daniel Loeb, CEO of Third Point, in a statement to regulators.

The hedge fund owns a stake of almost nine per cent in NABI Pharmaceuticals, and this marks the second time is two weeks that the company has come in for criticism, with Daniel Loeb earlier urging directors to sell the company, something he reiterated in this latest criticism.

NABI has performed poorly in recent months, with fourth quarter results from 2005 the worst in 15 years.

The move by Third Point demonstrates the influence and determination that many hedge funds now have in trying to obtain the best possible returns for their investors, involving themselves in arguments about management style and financial details of the companies they invest in.