SAN FRANCISCO Canadian fabless chip vendor and intellectual property (IP) provider Mosaid Technologies Inc. said Wednesday (Aug. 23) that its board of directors has rejected a demand by a New York-based hedge fund that it put the company up for sale.
In a letter sent to Mosaid earlier this month, Loeb Partners Corp. demanded that the directors put the company up for sale, threatening a proxy fight for control of Mosaid. Loeb, which purports to own more than 6 percent of Mosaid, said in the letter 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."
In a response to Loeb's letter, Thomas Csathy, chair of a special committee of Mosaid's board of director created to respond to the matter, writes that the directors believe that sale of Mosaid is "at this point in time, forced by a publicly dissenting shareholder demand and in a publicly disclosed process, is not in the best interest of our shareholders." Mosaid would consider any attractive offers for the company, the letter adds.
The letter states that Mosaid's directors would like to avoid a disruptive and costly proxy fight, but "are prepared, if necessary, to engage in a proxy contest to confirm the support of our shareholders."