New York Hedge Fund Seeks Sale Of Microchip Company

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.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of