Aug. 07--A day after disclosing that his fund took a 7 percent stake in Baxter International, billionaire activist investor Dan Loeb's hedge fund amended its security filings Thursday, revealing an even bigger stake: 9.6 percent, or 52.5 million shares.
And Loeb wants to use his $2.1 billion investment to name representatives to two board seats of the medical device and hospital supply firm -- a move he's discussed with Baxter's leadership, the filing makes clear. Loeb, whose Third Point hedge fund is based in New York, also wants a say in who Baxter's next CEO will be.
A letter Loeb sent to Baxter on Wednesday thanks current Baxter CEO Robert Parkinson Jr. for meeting with him over the last week, praises Parkinson for last month spinning off Baxter's biosciences division Baxalta and states, "We are well-positioned to help select a new CEO, drive strategy and provide a thoughtful perspective on capital allocation."
Loeb also wants to reform corporate governance at Baxter, according to the letter. He criticized the company's staggered board as "shareholder unfriendly and archaic."
In a statement, Baxter said it has "a proven track record of taking action to create significant value and will continue to evaluate shareholder input, assess opportunities and make decisions to further achieve this important objective."
Loeb's growing stake was revealed in a dramatic week for Baxter and its former division. On Tuesday, Irish drugmaker Shire made an unsolicited $30.6 billion offer for Baxalta -- a bid Baxalta management is resisting.
Parkinson, 64, said last week that he plans to step down and that he has hired a search firm to find his replacement.
Reporter Ameet Sachdev contributed to this report.
kjanssen@tribpub.com
