Activist hedge fund targets MIPS Tech
Starboard (New York) said MIPS’ stock price has been "dismal" since the company’s initial public offering in 1998. Starboard said it believes the low stock price is due to the company’s "weak operating performance, deteriorating margins and poor capital allocation decisions around internal investments and poorly executed acquisitions."MIPS’ stock closed at $5.49 Monday, up 6 percent from Friday.
The company’s stock price is down from a 52-week high of $18.19.MIPS (Sunnyvale, Calif.) issued a statement Monday acknowledging receipt of the Starboard letter and saying it does not intend to make a recommendation to shareholders about Starboard’s nominees at this time. MIPS said three seats on its board are up for election at its 2011 annual meeting of stockholders.
"MIPS Technologies’ board of directors and management team are committed to acting in the best interest of the company and all MIPS stockholders," the company said through a statement. "We have had an open dialogue with Starboard since we first became aware of their investment in the company. MIPS’ board is actively engaged in the strategy of the company and is committed to building value for all stockholders."
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