New activist Ditech investor reveals owning 10 percent stake

Lamassu Holdings, an investment firm located in the Southern California municipal entity known as Newport Coast, revealed in a filing today that it spent $1.8 million to acquire a 9.8 percent stake in Ditech Networks, the Mountain View maker of equipment used to enhance voice quality and cancel echo in phone calls.

Lamasu’s holdings of Ditech were reported on a Form SC 13D, the kind of filing made by investors that own up to wanting to take a more active role in the company’s future, and appears to be the first investment Lamassu has made in a public company, judging by its single filing on record with the Securities and Exchange Commission. We tried an Internet search on  Lamassu, and primarily what we found was related to the mythical Babylonian figure (an image of which is featured), depicted as a protective demon with a bull’s body, eagle’s wings, and a human head.

Ditech shares, which touched an all-time low of 60 cents a share last month, are down 75 percent so far this year. The company has struggled with a drop in sales to its biggest customer, Verizon.

In its filing, Lamassu reported that it believes that Ditech “represent an attractive investment opportunity,” and that it has “considered or proposed or may consider or propose various alternatives with respect to” Ditech and its investment, “including engaging in discussions with management and the Board of Directors,” along with acquiring additional shares (including through a possible tender offer), proposing a merger or similar transaction, “communications with other stockholders, making proposals to the Issuer concerning the capitalization and operations of the Issuer and seeking representation on the Board of Directors.”


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