Feb 21 Altai Capital, a major shareholder in
network equipment maker Emulex Corp, urged the company
to consider selling itself, among other options, and called its
decision to buy New Zealand-based Endace Ltd
Emulex should have used its cash balance to buy back
undervalued shares instead of the $130 million acquisition of
Endace, said Altai, which owns about 5.4 percent of Emulex's
A share repurchase remains an option for Emulex, which used
about 60 percent of its cash in hand to buy Endace, Altai said
in a letter to Emulex Chief Executive James McCluney.
Emulex said on Feb. 12 that it had acquired 88 percent of
Endace, which makes network monitoring and recording solutions
for high-speed networks. The company offered to buy Endace in
Altai Chief Investment Officer Rishi Bajaj urged Emulex to
add members with a "greater economic stake" to its board. He
also asked the company to consider a range of options including
selling itself and pursuing profitability over growth.
Broadcom Corp had offered to buy Emulex in 2009 for
about $764 million in a bid that turned hostile.