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