Starboard Acquires 10.7% Stake in Mellanox
The activist investor believes Mellanox must boost its revenue with increased spending on research and development
New York-based Starboard Value LP has acquired 10.7% of the shares of Nasdaq-listed Mellanox Technologies Ltd. for $250 million, according to filing with the U.S. Securities and Exchange Commission from Monday. Israel-based Mellanox, which offers computer server and storage products, saw its share price increase by 6% in after-hours trading.
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Activist investor Starboard believes Mellanox is trying to increase its revenue by spending more than it should on research and development, according to a report in the Wall Street Journal. The company’s margins are suffering which is reflected in Mellanox’s stock performance. The company’s 14% rise in stock price falls short of the 16% increase across the S&P 500.