Starboard's Mellanox stake falls below 10%

Starboard Value LP sold part of its stake in the Israeli company Mellanox Technologies (Nasdaq: MLNX) and now holds less than 10% of the company. The investment fund sold Mellanox shares for $ 29.3 million a day this week, at an average price of $ 85.2, eight months after investing in Mellanox at prices of $ 44 to $ 51. per action.

Starboard now owns 9.9% of Mellanox, a $ 434 million equity stake. In cash and on paper, the fund has made a nice profit. Since it was learned that she had taken a stake in Mellanox, the price of the latter rose by 66%.

Starboard activist investor expressed dissatisfaction over Mellanox's operating profit margin and requested a review of the board of directors and to appoint directors who would represent him . After a struggle that lasted months, the parties recently reached a compromise whereby three new directors would be appointed to replace three who would resign, with another director leaving in the coming months.

Mellanox, led by founder Eyal Waldman, produces communication equipment for fast data transfer. It has a market capitalization of $ 4.5 billion. The company is expected to release its second-quarter financial results next week

Posted by Globes [online] Israel Trade News – www.globes-online.com – July 12, 2018 [19659002] © Copyright Globes Publisher Itonut (1983) Ltd. 2018