I think it’s wrong to assume Eli has shareholders interests as a top priority.
Eli responded to my email and dismissed concerns about his credibility and asserted that he is only telling us facts.How can credibility be dismissed so easily. Doesn’t that impact how and what facts are presented ?
I was hoping to hear those facts at the cc and unfortunately heard little. I’m not clear if because of the 24 hour notice, but it was disappointing that only PMCW was on the call. I listened to the call, later read the transcript, read the posts on SI, and have given it thought. I remain unclear that Eli answered what is now so different, other than the risk of a trend developing with the Broadcom win at the routing level (and it remained unclear how new that information was) and more of a focus on larger players.
I get it that the combined company may be a 1 + 1 = 3 or 8. I also believe there may be a strong desire to create a world leading Israeli networking company. I do not discount some degree of nationalism and would understand it.
I don’t get selling it at a 16 % premium and at the low-mid range of the price range presented by the company used by EZ in justifying the price, particularly at a time of accelerating growth of the datacenter market, and consolidation in the sector at much higher premiums.
And one example of the credibility issue…
October 1, 2015 Joint Press Conference
Eyal Waldman -“Eli Fruchter, an old friend of mine and the CEO of EZchip, will open with a few comments about EZchip and about the merger,"
Eli Fruchter “In recent years, Eyal and I have met frequently, each time in a different restaurant in Yokneam, occasionally sharing ideas about our next steps, and it was obvious that at some point, the time would be right for a merger.”
EZ Press Release Nov 5, 2015
“EZCHIP CEO ELI FRUCHTER AND MELLANOX CEO EYAL WALDMAN ARE NOT FRIENDS. THEY HAVE ONLY MET A FEW TIMES OVER THE YEARS AS BUSINESS PROFESSIONALS prior to the May 2015 meeting when Eyal conveyed Mellanox’s interest to commence evaluation towards a transaction with EZchip.”
Huh ? What is the need to change the story ? Is there something we are not supposed to know ?
Also, now Tilera products are a dud. Very different than what Eli said in the 10/1 press conference. Now it’s too tough a market ? That’s an about face.
Although we never got numbers, everything would point to a clear defeat for the merger in November.The go-shop was a sham and RC is right in questioning what was Eli doing on subscription message boards lobbying for the merger at 25.5. Why would another buyer have any interest under those circumstances.
Without further information about deteriorating markets for the company I plan on voting against the merger again and hope others do too. I think shareholders including RC are asking for a fairer price, not the moon, and if not, an independent EZchip.
Happy New Year ! |
