Why Shares of Mellanox Technologies Jumped Today
Shares of chip maker Mellanox Technologies (NASDAQ: MLNX) jumped on Tuesday after hedge fund Starboard Value LP disclosed a 10.7% stake in the company. Starboard intends to influence the company's strategy, according to Reuters. Shares of Mellanox were up about 11% at 12:20 p.m. EST.
Starboard has acquired a roughly $300 million stake in Mellanox, making it the largest shareholder. In its filing with the SEC disclosing the purchase, Starboard laid out its rationale: "The Reporting Persons' interest in the Issuer is solely based on their view that tremendous value can be created through operational improvements or other strategic alternatives."
Image source: Mellanox Technologies.
Source: Fool.com
