Friday, July 07, 2006 4:45:53 PM
Interesting stand of our biggest shareholder -
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060707:MTFH81631_2...
NEW YORK, July 7 (Reuters) - Vitesse Semiconductor Corp. (VTSS.PK: Quote, Profile, Research), which is facing regulatory investigations for options backdating and other issues, should immediately be put up for sale, its largest shareholder demanded on Friday.
In a harshly worded letter, Chapman Capital, which holds over 16 million shares in the semiconductor company, said Vitesse would be worth more than $4.50 per share if sold.
Vitesse, which was delisted from Nasdaq last month, is one of dozens of companies under investigation by the U.S. Securities and Exchange Commission for backdating option grants to senior executives. In May, the company said it received a subpoena from federal prosecutors requesting documents involving stock option grants.
"Chapman Capital demands that Vitesse, following financial restatement and rescission of all improperly granted stock options, conclude a full scale auction of the company," the Los Angeles-based activist hedge fund said in a press release accompanying an SEC regulatory filing.
The $300 million Chapman Capital, managed by former Goldman Sachs trader Robert Chapman, has made similar demands of two other companies recently, including Carreker Corp. (CANI.O: Quote, Profile, Research) and Sunterra Corp. (SNRR.O: Quote, Profile, Research).
Vitesse was recently trading up 12 cents, or 8.4 percent, at $1.54 on the over-the-counter market.
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