Published On: Tue, Dec 16th, 2014

Starboard Sells DSP Group Holdings

Eli Ayalon picture Tamar MatzapiStarboard sells DSP Group holdings

 

Eighteen months after leading an ouster of the chairman of DSP Group Inc. (Nasdaq: DSPG), US investment fund Starboard has sold most of its stake in the Israeli company, which develops chipsets for cordless telephones.

US-based fund Starboard became an investor in DSP Group in 2011, when it bought shares to the tune of $12 million at $7.8 per share. Starboard claimed that the company was underpriced, and pushed for its sale. After a control battle, Starboard succeeded in appointing directors on its behalf and in ousting company founder Eli Ayalon from the post of chairman. At one point, Starboard owned 10% of DSP Group.

It emerges from reports in the past few days that the fund has sold DSP Group shares. It is now no longer considered a party at interest, and owns 4.8% of the company, currently worth $11.3 million. Over the past several months, Starboard has sold shares to the tune of some $6 million, at an average price of $9.9 per share. DSP Group’s current share price is $10.9, giving the company a market cap of $236 million.

Published by Globes [online], Israel business news – www.globes-online.com

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