Ahead of the EZchip’s shareholder meeting on January 19 - to vote on its sale to Mellanox - the company published Monday a notice detailing the events of the last month. The company’s last shareholder meeting was postponed at the last minute when the two companies realized they did not have the necessary majority - 75% - due to the opposition of a minority of EZchip shareholders.
After the meeting was postponed, Mellanox gave EZchip a 30-day period to find another buyer, and said it would match any higher offer if one was received. But the 30 days passed without a new offer.
The notice of the rescheduled meeting explains that several days after the postponement, Barclays - which represents EZchip - approached 31 potential suitors, including six that the bank had already approached before the signing of the agreement with Mellanox.
One of the 31 expressed interest in negotiations, signed a confidentiality agreement with EZchip, and had their senior executives meet with the Israeli company’s senior management. However, after a few days, the potential suitor told Barclays it was not interested in EZchip.
Overall, 26 told the bank they were not interested, and four others failed to respond. No other body or institution independently contacted the company or the bank.
EZchip, led by Eli Fruchter, develops network processors for institutions. Mellanox seeks to acquire EZchip for $811 million, or $25.5 per share. EZchip asked its shareholders to support the deal. Raging Capital, which holds 8.1% of the company, announced its intention of opposing the takeover.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2015
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