In Scathing Letter, Activist Investor Criticizes Mellanox for High Expenses
In November, Starboard became the biggest Mellanox shareholder. In a Monday letter, it called the chip designer an “underperforming company”
Dror Reich | 18:23 08.01.2018
New York-based activist investor Starboard Value LP sent a letter to the board of Mellanox Technologies Ltd on Monday, urging the company to reduce expenses by cutting down workforce and research and development costs. In November, Starboard acquired a 10.7% stake of Nasdaq-listed Mellanox for $250 million, becoming the tech company’s largest shareholder.
For daily updates, subscribe to our newsletter by clicking here.Israel-based Mellanox develops and manufactures electronic components that facilitate data transfers between servers and storage devices. The company is traded at a market capitalization of $3.3 billion, up some 30% since Starboard’s acquisition. Mellanox employs approximately 2,700, with 2,000 employed in the company’s research and development facilities in Israel.