Mellanox Considers Sale, Says CNBC Report
Mellanox published its preliminary third-quarter results for 2018, reporting its fifth consecutive quarter of record results
Nasdaq-listed Israeli chipmaker Mellanox Technologies Ltd. has contracted a financial adviser to consider its sale in response to takeover interest, CNBC reported Wednesday. The talks are still in the early stages, according to CNBC.
Mellanox develops and manufactures chips for communication networks in data centers. The company recently settled a boardroom struggle for control with Starboard Value LP, an activist investor that acquired a 10.7% stake in Mellanox in November and immediately launched a campaign against the company’s management, pushing for extensive operational and administrative changes. On Wednesday, Mellanox published its preliminary third-quarter earnings for 2018, reporting its fifth consecutive quarter of record results.
Mellanox is currently up as much as 12.68% on Nasdaq in after-hours trading. The company was up 10.29% on Wednesday market close.