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TriQuint reportedly hires Goldman to explore options, shares jump

  • Forbes reports TriQuint (TQNT +6.3%) has hired Goldman to act as an adviser in response to ongoing pressure from activist investor Starboard Value. Shares have spiked higher in response.
  • Starboard (8% stake as of December) originally disclosed a position in TriQuint last April. In October, the firm called on TriQuint to sell its mobile power amplifier business (has lost share in recent years), and to overhaul/downsize its manufacturing ops to become more efficient. Starboard later nominated six directors for TriQuint's board.
  • A banker talking with Forbes suggests selling one of TriQuint's fabs (as Starboard suggests) is easier said than done, given how interdependent the fabs are. "It’s not as if one facility manufactures ball bearings and the other manufactures toasters."
Comments (1)
  • fotonomad
    , contributor
    Comments (8) | Send Message
     
    Big run up today defies any sound reasoning:
    TQNT is in so much trouble that Starboard wants to replace 6 of the 8 current Directors on the Board. Now TQNT has enlisted GS to - do what? A possible re- org? Why does a company that has NO positive P/E manage to have its market cap increase by 11% in a single trading day, when the only "NEWS" is they need some radical change of course - and whatever form that course takes is unknown in nature, will require an indeterminite length of time, and have uncertain outcomes? Barring further specific news - and very soon - I see this as a great short opportunity.
    12 Feb, 01:25 AM Reply Like
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