Monday, 29 August 2016
Last updated 2 days ago
Mar 24 2008 | 10:59am ET
Obrem Capital Management thinks a circuit has burned out at microchip manufacturer Micrel. And it has the solution: Sell.
The New York hedge fund earlier this month sent a letter to Micrel management, chastising it for “a poorly-developed outsourcing strategy” and “bloated cost structure.” The firm, which owns 9.6% of San Jose, Calif.-based Micrel, has asked to meet with the company’s board of directors, but it has already reached its conclusion: “the Board would maximize value for Micrel’s shareholders by selling the company to a strategic buyer,” namely a larger semiconductor company.
According to Obrem—which demands at a minimum that the company set up a special committee to investigate strategic alternatives—current management will be unable to boost sales or improve Micrel’s cost structure.