Daniel Loeb's Third Point nearly halved its stake in PDL BioPharma (NDAQ:PDLI) according to a Schedule 13D/A filing with the SEC. The move comes after the biopharmaceutical company bended to the demands of the activist shareholder by announcing that it would actively seek a sale of the entire company.

"We are encouraged by PDL's October 1st press release announcing that the Board will actively seek the sale of the entire Company or all of its component pieces," said Daniel Loeb in a letter to the board. "We are also pleased with the progress apparently being made by the Merrill Lynch investment bankers in spear heading this process and advancing it expeditiously to a successful conclusion."

Third Point, which now holds a 5.1% stake in the company, said in its letter to the board of directors that it was encouraged positive developments related to the company's intentions to conduct a sales process but expressed concern that the board doesn't include a Third Point representative and is being led by Mr. Gage as an interim chief executive.

"Despite these positive developments, we are disappointed that the sale process is still being led by a Board that does not include a Third Point representative, and that Patrick Gage remains the Company's CEO, despite having demonstrated his unsuitability," said Daniel Loeb. "Accordingly, although we remain convinced that PDLI shares are undervalued, and that a sale will maximize shareholder value, in light of your continuing refusal to provide us with a voice in the Company's affairs through a Board seat, we have reduced our position."

In the end, a sale process is great news for all shareholder but the fact that Third Point nearly halved its position in the company could prove to be a sign that a sale is not a gaurantee at this point. As a result, shareholders should be very prudent at this point and perhaps hedge their positions with options as we sit on this buyout premium. Combined, these factors make PDLI a stock worth watching!

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E.W. Scripps Co. (NYSE:SSP) is the latest newspaper and media company to undergo a facelift to better face challenges and opportunities online. The company proposed a spin-off that would allow investors to choose from the growth potential of new media or the dependable cash flow of old media.

The tax-free deal would create a new public entity containing the company's cable operations - including Food Network and HDTV - along with its internet operations - including Shopzilla and uSwitch. Meanwhile, SSP will retain the company's newspapers, television stations, licensing and syndication operations.

"It's our intention to create two publicly traded companies, each with a sharpened strategic focus that would foster continued growth, solid operating performance and a clear vision on how best to build on the specific strengths of our national and local media franchises," said chief executive Kenneth Lowe in a statement.

The past 24 months have been very difficult for old media companies as online publishers continue to eat into margins and reduce subscription rates. Companies like the Wall Street Journal and New York Times are even feeling the crunch and an industry shift has become all but inevitable.

Consequently, this move to divest new media from old media comes at the perfect time for shareholders and represents perhaps the company's only logical next step. Combined, these factors make SSP a stock worth watching closely!

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E-Z-EM, Inc. (NDAQ:EZEM) board members and executives may find themselves in hot water soon after a large shareholder expressed dissatisfaction with current management's desire and ability to take steps to maximize shareholder value. Shareholders are hoping that these moves could help unlock value in shares that have remained somewhat stagnant recently.

Albert Investment Strategies, which owns 7.5 percent of the company, said in a Schedule 13D/A filing with the SEC that the company should (1) implement a quarterly dividend program, (2) conduct a share repurchase, (3) evaluate a sale or spin-off of the company's RSDL division and/or (4) evaluate a sale of the company. The activist hedge fund also pointed out several other key issues dealing with the company's management.
 
"AIA established its initial position in E-Z-EM because we felt the company's prospects were not being adequately valued by the markets," said the hedge fund manager Ira Albert. "We were attracted by your meaningful market share of barium  imaging  products, your new  product pipeline, the strong macro trends in the healthcare industry, and later by the energy of new members of your senior management team coupled with the opportunity for meaningful gross profit and operating margin improvements.

"It is our intention to continue to discuss our ideas with management and hope to expand our dialogue to include the Board as well. We may also speak to other shareholders and build a strong consensus of opinion in support of our value creating ideas."

In the end, this is great news for shareholders as it means that significant value could be unlocked over the long or short term. If the company pursues a sale, it could mean rapid share appreciation in the very short term. Combined, these factors make EZEM a stock worth watching!

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