Starboard Cuts Stake as Mellanox Peaks
The activist investor sold 28% of its holdings in the Israeli chipmaker over the past week, taking advantage of Mellanox’s stock reaching its highest valuation since 2012
Starboard acquired a 10.7% stake in Mellanox in November 2017 and immediately started clashing with the chipmaker’s management and board over. The two companies reached an agreement in June 2018 with several of Starboard’s candidates appointed to Mellanox’s board. The sale reduced Starboard’s stake to 5.9%.
Since October, it has been reported several times that Mellanox is negotiating its sale, with Intel being pegged one of the bidders, along with chipmaker Xilinx. The reports have driven Mellanox’s stock to above $102 over last week for the first time since 2012, leading Starboard to divest some of its shares.