Sept 16 Activist hedge fund Starboard Value LP
said network equipment maker Emulex Corp was "extremely
undervalued" and called for reconstituting the board to include
Starboard said it owns about 7.9 percent of Emulex's stock,
up from the 6.9 percent it first reported in July.
A new board consisting of independent directors and
shareholder advocates should be able to evaluate each of
Emulex's businesses with a fresh perspective and determine the
right strategy to enhance shareholder value, Starboard managing
member Peter Feld said in a letter on Monday.
Emulex was not immediately available for comment.
The company appointed Chief Operating Officer Jeffrey Benck
as chief executive in July, after the then CEO James McCluney
was named the chairman. ()
Starboard joined another major shareholder, Altai Capital,
in questioning Emulex's decision to buy New Zealand-based Endace
Ltd, and called it "a poorly timed acquisition".
Emulex acquired Endace for about $130 million in cash in
Altai, which owned about 6 percent stake as of June, has
been urging Emulex to sell itself.
Bloomberg in July said Emulex has hired Goldman Sachs Group
Inc to seek potential buyers, quoting two people with
knowledge of the situation.
Another activist shareholder, Elliott International Capital
Advisors, held about 10 percent stake in Emulex as of August
Shares of Emulex rose 4 percent to $8.07 on the New York
Stock Exchange. They have risen about 6 percent since the
beginning of the year, but are trading at about half their 2010