The ongoing MathStar saga

6/17/2009 5:21 AM EDT

Last week, MathStar's board of directors recommended that shareholders reject a tender offer from private equity firm Tiberius Capital II LLC. That firm earlier this month offered to acquire 51 percent of the outstanding shares of MathStar for $1.15 per share (about $5.8 million in total).

MathStar's board is recommending that shareholders reject the offer because, among other reasons, the $1.15 per share offer is less than the estimated $1.40 per share liquidation value of MathStar, according to the company.

Also last week, Portland Business Journal reported that MathStar is considering a merger with a privately-held company that could use MathStar's cash reserves for expansion. The publication also reported that MathStar is considering a move to restart operations and could acquire a new video technology similar to one previously created by MathStar. Portland Business Journal cited a regulatory filing made with the U.S. Securities and Exchange Commission.

MathStar, which has also received several buyout offers from Minnesota software maker PureChoice Inc., is scheduled to vote on a shareholder proposal to liquidate the company on June 29.

If all this sounds like a lot of possible courses of action for a company that discontinued its field programmable object array chip development and its board-level systems development businesses in May 2008, well, it is.

So what will ultimately happen to MathStar? Seems an open question at this point. Of course it would be very interesting to see the company restart operations. We'll have to stay tuned.