Potomac Capital Management II, LLC announced that it delivered a second letter to the Board of Directors of PLX Technology Inc. (PLXT: Quote). In the letter Potomac expressed its grave disappointment with the Board's failure to provide a meaningful response to the issues raised in Potomac's first public letter.
Potomac Capital Management II, LLC, together with its affiliates, is a significant shareholder of PLX Technology, with ownership of approximately 5.1% of the outstanding shares of common stock of the Company.
Potomac said it was troubled that despite the significance of its concerns, management had offered to meet with Potomac as part of its meetings with investors on routine communications and members of the Board were not available for an immediate meeting.
Meanwhile, the Board had adopted certain shareholder unfriendly defensive provisions to entrench themselves only four days after Potomac made a public filing with its open letter, Potomac said.
Potomac reiterated its strong belief that value can best be created by capitalizing on the historic interest in PLX and exploring all strategic alternatives, including the sale of the Company.
However, Potomac stressed that they had no faith that the current Board will translate strategic interest in PLX into a value-maximizing transaction and concluded that change is urgently needed in the composition of the Board.
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by RTT Staff Writer
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