A large Sun-Times Media Group (NYSE:SVN) shareholder asked the company to consider a range of strategic alternatives aimed at unlocking value for shareholders, according to a Schedule 13D/A filing with the SEC.

K Capital Partners, which owns a 9.9 percent stake in the company, said the company is trading at a discount to its intrinsic value and demanded that the company take immediate action to unlock shareholder value. The activist hedge fund demanded that:

1. The Company should hire a strategic advisor and put the Company up for sale.

2. Raymond Seitz should step down as Chairman of the Board. While the reporting Persons have great respect for Mr. Seitz as an individual, his personal travel schedule and other interests do not allow him to provide present and active leadership.

3. Gordon Paris should step down as a member of the Board. Mr. Paris was CEO of the Company during its deterioration and during its costly decision to invest in Canadian commercial paper; given these facts, there is no justification for allowing Mr. Paris to remain on the Board.

4. The Company should appoint two institutional shareholders to the Board, so that the Board has greater shareholder representation. The current Board has minimal ownership, as has been evident in its decisions and actions.

5. The Company should execute a share buyback with the remaining unused capacity under the existing buyback program, which the Reporting Persons believe to be in excess of twenty million dollars. The Reporting Persons believe a twenty million dollar buyback is very conservative and prudent given the Company's potential financial liabilities and operational requirements.

Shareholders are hoping that the company will consider these alternatives and take some measures to unlock value for shareholders. Whether or not this will happen depends on the company's response, but this is definitely a stock to watch in the meantime!

Related Companies
Tribune Company (TRB)
News Corporation (NWS)

A large PDL Biopharma (NDAQ:PDLI) shareholder demanded that L. Patrick Gage immediately resign as Chairman and as a member of the board and that the company's management and Board focus on a prompt sale of the company, according to a Schedule 13D/A filed with the SEC today.

Daniel Loeb's Third Point LLC, which owns about 9.7 percent of the company, said in a letter to the board that Patrick Gage's comments during his recent conference call sent a "confusing and unwelcome" message about PDL's strategy. Only eight days before the conference call the company announced the board was continuing its strategic review, but during the conference call Mr. Gage seemed to convey that the company could reposition itself to go-it-alone.

"Dr. Gage's destructive, 'go-it-alone' research and development approach combined with his history as Chief Apologist for Mark McDade's failed strategies and his own spotty record as a board member at other companies
lead us to respectively request that Dr. Gage step down as Chairman and a member of the board," said Third Point head Daniel Loeb. "We reiterate the previous offer of Third Point nominees to serve on the board, where they can be expected to work constructively with management, other board members and representatives of Merrill Lynch to bring the strategic review to a successful conclusion of maximizing value for all PDL shareholders."

Many shareholders have already indicated a strong willingness to sell the company and Third Point is continuing its campaign to do just that. Whether or not they will be successful in forcing a sale remains to be seen, but PDLI remains a great stock to watch!

Related Companies
Genentech Inc. (DNA)
Medarex Inc. (MEDX)
Dor BioPharma (DORB)

Medco Health Solutions Inc. (NYSE: MHS) has announced it will buy PolyMedica Corporation (NASDAQ: PLMD) in an all-cash deal worth $1.5 billion.

PolyMedica is a direct supplier of diabetes testing supplies and other diabetes related products that is largely known for its Liberty brand. The purchase price values PolyMedica at $53 per share, a 17% premium over its closing price before the announcement.

Medco is explicitly making a play for the burgeoning diabetes market, as the press release announcing the deal states:

"An estimated 17 million Americans are currently treated for diabetes, with more than 1 million patients diagnosed each year; an additional 7 million are estimated as undiagnosed. Diabetes care represents one of the fastest-growing segments of health care in a market estimated at more than $25 billion a year. These patients represent 5 percent of the population but account for more than 15 percent of total drug spending..."

Medco is a pharmacy benefit manager that mainly provides prescription drug programs, with clients including Blue Cross/Blue Shield. Last year, Medco had net income of more than $600 million on revenue of more than $40 billion. The purchase of PolyMedica is seen positively by analysts as complimenting Medco's existing services, which include giving prescriptions to 2.8 million diabetes patients.

Both Medco shares and PolyMedica shares are trading near all-time highs on news of the deal, but the possible synergies from this purchase still makes MHS a stock worth watching!

Related Companies
Express Scripts, Inc. (ESRX)
BioScrip Inc. (BIOS)
CIGNA Corp. (CI)