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Friday, Oct 25
Potomac Capital writes letter to PLX, threatens proxy battle
- 9.8% shareholder Potomac Capital writes a letter to shareholders of PLX Technology (PLXT) stating it has nominated a slate of 5 directors for election after "disappointment that the Board of Directors of PLX appears resistant to engaging in meaningful discussions with its largest stockholder."
- Potomac spares no words, calling PLX's operating performance "historically weak" and its acquisition strategy a failure that has resulted in shareholder dilution.
- Also of issue to Potomac: only 2 of the board's 6 independent directors own PLXT stock, and in aggregate, own less than 1% of shares outstanding. Potomac calls the directors "unvested stewards of stockholder capital."
- PLXT shares are up 43% and 95% in the last 1 and 2 years respectively.