back to article Activist investor rages at Mellanox for dismissing Marvell's advances

InfiniBand/Ethernet tech supplier Mellanox is being targeted by an activist investor pissy that it rejected overtures from Marvell. Starboard Value has bought a 10.7 per cent holding in Mellanox, wanting to influence the company's management to create more value for shareholders (increase share price so we can make a profit …

  1. Doctor Syntax Silver badge

    "Peter Field is a principal at Starboard Value and also a director of Marvell Technology Group"

    That's good. I'd be upset to hear that he had a conflict of interest.

    1. Voland's right hand Silver badge

      That's good. I'd be upset to hear that he had a conflict of interest.

      Come on, Vulture Capital never has a conflict of interest. It has only one interest - "get rich quick" schemes. Is anyone looking for long term returns as far as they are concerned is irrelevant.

      1. Mark 110

        I am with you both. Mellanox looks like a viable business and with the right management could gfrow to be a big player.

        Starboard just bought into an undervalued (probably correct assessment) share, and are now putting stuff into the news to ramp the price up and get their quick buck. The seedier side of capitalism.

  2. Anonymous Coward
    Anonymous Coward

    Omnipath may have played a role.

    That said, Mellanox would do well to expand their scope, to say custom packaging and perhaps a reference ultra dense cluster rack with cost reducing mid plane copper

    traces to eliminate cable costs.

    Longer term, integration of interconnect on chip will eventually occur going after the fabric

    adaptor market, but switches will still be required and Mellanox will remain in a strong position.

    I think the cluster market lives in fear that IBM will simply buy Mellanox (c.f. summit and sierra systems).

  3. BebopWeBop

    This activist has been involved with Yahoo! and helped precipitate CEO Marissa Mayer's departure.

    So not all bad I think you want to say?

    1. Doctor Syntax Silver badge

      "This activist has been involved with Yahoo! and helped precipitate CEO Marissa Mayer's departure.

      So not all bad I think you want to say?"

      Not good considering how long it took.

  4. Anonymous Coward
    Anonymous Coward

    I must be old, because it still shocks me that so many companies are allowed to merge with no concern for the creation monopoly positions in markets. Of course, this appears to be the only way to compete with companies from countries that have considerable, direct, governmental control of industry. It is important to remember that it was the large companies in the "developed" world that pushed to move manufacturing/industry to the lower cost centers in the 1970s and 80s. We'll soon be devolved to "under developed" status. This will increase control by the new Royalty our wealthy Corporate owners. This process is already well underway in Trumpistan. Deregulation and lack of monopoly control. It's bad for almost everyone.

    1. Mark 110

      Agree completely - the test for mergers should be whether its good for the consumer. Currently it seems to be whether its good for the shareholder.

      If there's no net benefit to the consumer then these mergers should be knocked back. Its then about building a successful company for long term profitability, instead of what currently happens which is putting a shine on the results to become a target for acquisition (Autonomy anyone?).

  5. Will Godfrey Silver badge


    Whatever happened to the idea of making quality goods, or providing a good service?

    1. Anonymous Coward
      Anonymous Coward

      Re: Confused

      That is so 19th century.

  6. Mark M.

    This just reads; "Greedy American shareholder wants quick profit... now."

    This Field chap managed to wrest control of Marvell from its original board of directors just over a year ago with just a 6% investment stake in Marvell...

    Looks like he now wants to try the same contemptible trick with Mellanox. Probably bordering on being immoral and unethical.

  7. hoola Silver badge

    Active Investor

    In other words, another bunch of self-serving greed shites that are just out to get everything the can in the short-term and bugger the consequences.

    Calling them "Active Investors" makes it sound respectable. Just like Elliott, they are total and utter shites with no morals and simply do not care what the outcome is,

    Just like hedge-funds managers, they should all be locked up as these people are the cause of so many problems it is no true

  8. Someone Else Silver badge

    Gee, I wonder where it's written...

    ..that Starboard, or any other vulture capitalist/activist divestor/Hedge-fund mangler must buy Mellanox (or any body else's) stock? You don't like how the company is managing its business? Don't but their effing stock!

    It really is that simple.

    1. Someone Else Silver badge

      Re: Gee, I wonder where it's written...

      Uhh...that should read: Don't buy their effing stock!

  9. Andromeda451

    VCs - Lawyers

    Neither add value except to line their own pockets. Mellanox has very good products and this guy would make sure they crash and burn given half a chance.

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