Nabi Biopharmaceuticals (NDAQ:NABI) announced today in a press release that it had reached an agreement with activist hedge fund Third Point to settle their indifferences. The hedge fund finally received word from the company after threatening a proxy battle to takeover the company's Board of Directors.

According to the press release:

"Under the terms of the Settlement Agreement, 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 (SAC) to continue the company's previously announced process of exploring strategic alternatives.

The SAC will work with the company's financial advisor, Banc of America Securities LLC, and management to evaluate a range of strategic transactions and initiatives and will have responsibility for recommending specific actions to the Nabi Biopharmaceuticals' board. 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."

The company's president and CEO Tom McLain added, "Through this agreement Nabi Biopharmaceuticals and Third Point will avoid a costly and disruptive consent solicitation at a time when the company is exploring a full range of strategic alternatives to enhance shareholder value. Our board and management team can also remain focused on serving our customers and executing our business plan as we continue to pursue the exciting opportunities that lie ahead for our company."

This is good news for NABI shareholders, who are now more likely to find themselves in a buyout situation in the future. NABI is definitely a stock to watch as this situation continues to progress.

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