SAN FRANCISCO Loeb Partners Corp., a New York-based hedge fund, has submitted a letter to fabless chip and intellectual property (IP) vendor Mosaid Technologies Inc.'s board of directors, proposing that the company be sold.
In the letter, which can be viewed on Mosaid's Web site, Loeb asserts that Mosaid (Ottawa, Canada) is "at an important strategic inflection point in light of the fact that the company has licensed the better part of the commodity DRAM industry."
The letter, dated Aug. 15, goes on to say that Mosaid's board and management team "must with dispatch hire an investment banking firm, the mandate of which is to maximize value for shareholders by addressing the structural impediments to Mosaid's garnering multiples in line with peers. More specifically, the board must clear the way for a prompt sale of the company to the highest bidder."
Loeb, which claims in the letter to own just over 6 percent of Mosaid's outstanding shares, goes on to say that if Mosaid's board does not act on its suggestions, it will "seriously consider" a proxy fight to replace some or all directors with "shareholder representatives who will take to heart the need to maximize shareholder value."
Loeb is seeking a response by Aug. 24, the date of Mosaid's fiscal first quarter 2007 earnings announcement. Mosaid said its oard has established a special committee comprised of independent directors to handle this matter.