Hedge fund investor Dan Loeb just picked his newest target

Dan loebREUTERS/Steve MarcusDaniel S. Loeb, founder of Third Point LLC, participates in a panel discussion during the Skybridge Alternatives (SALT) Conference in Las Vegas, Nevada May 9, 2012

Hedge fund activist Dan Loeb has picked his latest target.

Baxter International shares rose 3% on Wednesday August 5 after Loeb revealed he has bought a stake of about 7% in the company.

Loeb said in a letter to Baxter’s board that he wants the company to consider a pair of yet unnamed directors to its board that Third Point will select.

The diversified healthcare company revealed last week that it is replacing CEO Bob Parkinson with an as yet undetermined new leader.

The company’s stock is down more than 40% so far this year, with the stock falling on the news that Parkinson would leave Baxter along with a tepid second half outlook for 2015.

Baxter spun out its biotech division, Baxalta, this summer and the separated company almost immediately received a buyout bid from U.K. drugmaker Shire.

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