After receiving an unsolicited acquisition offer from investment banking firm Riley Investment Management LLC (RIM) for $15.50 per share in cash on January 30, Transmeta Corp chairman Hugh Barnes has rejected the firm’s offer.

Also late last month, RIM, which currently owns approximately 7% of Transmeta, filed a shareholder derivative action against several Transmeta board members and management.

Then, on February 7, Transmeta reported it was evaluating the offer and had engaged Piper Jaffray & Co to work with its board of directors and management team to help identify options to enhance shareholder value and assist the company in evaluating and responding to the Riley offer.

Barnes wrote in a letter to RIM, filed with the Securities and Exchange Commission, “After careful consideration, including a thorough review of the RIM proposal with our independent financial and legal advisors, Piper Jaffray & Co. and Fenwick & West LLP, the board has determined that your $15.50 per share indication of interest is not in the best interests of Transmeta’s shareholders.”

Further, “We believe that RIM’s indication of interest undervalues the Company’s assets, business and opportunities. The Board and management team remain focused on enhancing the value of Transmeta for all of its shareholders,” Barnes wrote.

By: DocMemory
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