Friday, September 07, 2007

Loeb To Candela (CLZR): "No Really, I Am a Passive Investor"

In a 13D filing on Candela Corp. (Nasdaq: CLZR) Dan Loeb's Third Point LLC disclosed a 9.8% stake in the company and a dispute over the 'passive investor' status of their investment. In May, Third Point initially disclosed a large stake in the company (8.7%) via a 13G (passive) filing.

Third Point said they recently received a letter from the outside counsel of the company, claiming that the firm demanded the company immediately pursue a process to sell and therefore were not "passive investors" and were required to file a 13D with the SEC. Third Point contends that view.

Third Point said in an August conversation with the company's CEO, one of their representatives suggested that the Company should consider pursuing strategic alternatives, but did not suggest or demand that the Company take any particular action, including putting itself up for sale.

Third Point said in light of receipt of the letter from the company's counsel, they have filed this Schedule 13D.

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