Lloyd Miller, a current and former investor in several Silicon Valley companies, disclosed Tuesday being the owner of a 5.9 percent stake in yet another: Ditech Communications of Mountain View.
According to a filing with the SEC, Miller will use his recent purchases of Ditech stock to support Read the rest of this entry »
Lamassu Holdings, the Southern California investment firm that first disclosed holding a large chunk of Ditech Networks in December, has since offered to acquire the company outright, according to a filing today with the SEC. Not having gotten a proper respons and “Assuming that (its) offer will be completely ignored or dismissed without a thorough evaluation,” Lamassu intends to nominate two members to Ditech’s board at its next shareholder meeting.
In a letter sent to Ditech’s chief executive and board Feb. 20, Lamassu managing member Timothy Leehealey said he was “writing to express my surprise and disappointment Read the rest of this entry »
Ditech Networks, the Fremont telecom equipment provider that Wall Street values about 40 percent below the amount of cash and short-term investments on its balance sheet, was asked to consider an offer to buy the company for about $32.8 million, or $1.25 a share, 28 percent higher than the stock’s closing price the day before Read the rest of this entry »
It’s never a good thing when you look on a chart of your stock price, and the line moved down at a 90 degree angle one day. But such is life at Ditech Networks, the Mountain View communications equipment maker.
Earlier this month, Ditech shares dropped 25 percent in one day after the company cuts it earnings outlook for the first quarter. Then, on August 15, the company announced that Timothy K. Montgomery, Ditech’s chief executive officer and president, was being put out pasture. He was temporarily replaced by Edwin L. Harper.
Technically, Montgomery is retiring. The company said it was still working out the terms of his retirement, but promised us an 8-K with all the gory details. Yipee! So we eagerly await that. In the meantime, he’ll get a cash salary of $2,000 per day. Yes, PER DAY. And he can buy $25,000 worth of Ditech options. And since the stock at $5.06 per share, that’s not nothing.
Which brings us around to today. The company is engaging in one of the most popular ways to prop up an ailing stock price. In an 8-K filed Wednesday, Ditech said its board approved a plan to buy back 9,100,000 shares out of about 33 million. The company will do it Dutch Auction style, which appears to be the favorite way for Valley companies to do such things these days. Essentially, the company will by back any stock that shareholders offer at prices ranging from $4.90 to $5.50. The company said that means it could spend any where from $44.6 million to $50.1 million.
And then, everything will be all better.
Subscribe via RSS all feeds