Marvell tender offer to correct misdated options

NEW YORK, Nov 5 (Reuters) - Marvell Technology (MRVL.O: Quote, Profile, Research, Stock Buzz) is planning a tender offer to correct misdated stock options for employees, the chip company said in a letter filed at the U.S. Securities and Exchange Commission on Monday.

Marvell, one of many U.S. companies under scrutiny for how it dated stock options, said in April that the SEC had launched a formal inquiry into its stock option practices. In July 2006 the securities regulator had started an informal inquiry.

The company told employees in a letter that after talks with the SEC, it was able to schedule a tender offer for Nov. 13 to Dec. 12 to allow them to correct tax issues related to their stock options without incurring a tax penalties.

"We will be using Marvell stock to compensate you for value lost in correcting these misdated options," the company said.

Marvell said on Oct. 12 that it had received a "Wells Notice" from the SEC in connection with past option-granting practices.

The notice indicated that the SEC intended to bring civil actions against Marvell and Weili Dai, director of strategic marketing and business development, for injunctive relief and monetary penalties, the company had said.

Marvell, a maker of chips for storage, communications and consumer electronics products, said at the time that it planned to continue cooperating with the SEC and would attempt to resolve the matter before the agency filed any action. (Reporting by Sinead Carew)