GOVERNMENT
Activist investor Starboard calls for substantial change at Israel’s Mellanox
- Written by: Tyler O'Neal, Staff Editor
- Category: GOVERNMENT
Starboard Value, the largest shareholder of Mellanox Technologies, with an ownership interest of approximately 10.7% of the Company's outstanding shares, has delivered a letter to Eyal Waldman, Mellanox's President and Chief Executive Officer, and the Mellanox Board of Directors. Starboard's letter attributed the Mellanox's underperformance to “weak execution,” “excessive spending” and “missed growth opportunities.” This letter is accompanied by a set of supplemental slides that provide further detail on several key topics.
“We invested in Mellanox because we believe the company is deeply undervalued and there are significant opportunities to create value based on actions within the control of management and the Board,” Peter Feld, a managing member of Starboard wrote. “Mellanox has a highly differentiated product set and a leading market position in a number of key verticals.” However, “Despite an extremely strong product and technology portfolio, Mellanox has been one of the worst performing semiconductor companies for an extended period of time,” Feld wrote.
The full text of Starboard's letter to the CEO and Board and the accompanying slides can be viewed at the following links:
Click the following link for this Letter .
Click the following link for the slides .