Daniel Ives, an analyst at Friedman Billings Ramsey, thinks Wednesday’s resignation of Zeev Breman as CEO of pink-sheet listed Comverse Technology (NASDAQ:CMVT) “removes another potential barrier to the ultimate breakup of the company.”
Not for the first time, Ives contends the option-scandal plagued communications equipment maker could be worth $23-$27 a share in a breakup scenario. “We believe the board now has a fresh opportunity to look at CMVT’s corporate structure and truly unlock value for shareholders,” he writes.
Ives notes that in announcing the resignation, the company wrote that its board is assessing “corporate structure and opportunities.”
In trading on the Pink Sheets, Comverse yesterday was down 25 cents at $20.05.