Mosaid to Review Strategic Alternatives |
Date: Tuesday, September 5, 2006
Author: Christopher Faille, Hedgeworld.com
OTTAWA, Ont. (HedgeWorld.com)—The board of a Canadian company that licenses intellectual property to semiconductor manufacturers said Tuesday [Sept. 5] that it has retained two investment banks—Morgan Stanley and CIBC World Markets—to assist in the review of strategic alternatives, such as the restructuring or sale of parts or all of the business. This appears to be a concession to Loeb Partners Corp., the hedge fund manager that, with its affiliated entities, owns approximately 9.1% of the common shares of the IP company, Mosaid Technologies Inc. Previous HedgeWorld Story. Loeb has demanded that Mosaid put itself up for sale. In a letter to the Mosaid board last month, Loeb's senior vice president, Gideon King, asked rhetorically: "What conclusion should owners draw when they note that the company now headed by your former general counsel [James Skippen] is enjoying appreciation in its market value? It is Loeb's opinion that the market has little faith in your management or board." Loeb couldn't be reached for comment Tuesday on the Mosaid statement. Mr. Skippen's new company is Wi-LAN Inc., Calgary, Canada. Wi-LAN (TSX:WIN) was trading in a range around C$0.90 when Mr. Skippen signed up as its skipper in mid-May. It's now trading above C$1.40. As Mr. King's jibe implies, Mosaid's own stock price went in the opposite direction after Mr. Skippen's departure. It fell from C$29 in mid May to C$22 in early August. Following upon Loeb's expressions of concern, though, the price of Mosaid (TSX: MSD) has recovered all that—back to C$29. Mosaid's statement Tuesday quoted Thomas Csathy, chairman of the special committee of the board. "As we approach the upcoming general meeting of shareholders, we believe more strongly than ever that we must communicate effectively to our shareholders that we are acting responsibly as custodians of shareholder value." In addition to the two banks, Mr. Csathy said, the company has also retained communications experts, legal counsel, and proxy solicitation advisers to "ensure that the steps we are taking are both appropriate and effective." The company will hold its annual general meeting on Sept. 22, in Ottawa, with a record date of Aug. 1. The record date, though, doesn't have its customary significance, because Mosaid has said that shareholders of record who have purchased common shares after that date will nonetheless be entitled to vote at the meeting, "subject to complying with conventional procedures."
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