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News Breaks | | | | February 21, 2013 | | 07:02 EDT |  | ELX | Altai Capital urges Emulex to consider strategic questions, add to board
Altai Capital, owner of 5.35% of Emulex's outstanding shares, disclosed that it sent a letter to James McCluney, CEO of Emulex, expressing concern over the company's proposed acquisition of Endace Limited. The letter notes that the analyst community is skeptical. Altai Capital also questions why Emulex would spend $130M, or over 60% of its outstanding cash balance as of December 31, 2012, to purchase a foreign company operating a very different business, rather than continuing to repurchase its "undervalued shares." Altai also questions the lack of share ownership by the board, and suggested that Emulex and its shareholders would be well-served to add members to its board with a greater economic stake in the company. Altai Capital urged Emulex to consider a number of specific strategic questions, and to "choose the option with the highest expected risk-adjusted return." | |
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News For ELX From The Last 14 Days Check below for free stories on ELX the last two weeks. |
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| May 14, 2013 | | 10:01 EDT |  | ELX | On The Fly: Analyst Upgrade Summary
 Subscribe for More Information | | | 05:58 EDT | | ELX | Emulex upgraded to Neutral from Sell at Goldman
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