Relational operates by buying a significant holding in mature companies that have performed worse than competitors, and then applies pressure to improve their performance. In NatSemi’s case, he told the Wall Street Journal that he plans to seek two board seats and push for changes that would boost the stock price.
There is no way to look at this other than that the board has failed to appropriately oversee this company, said Whitworth. He said he has prepared detailed comparisons of National Semiconductor’s financial performance against other makers of analog chips and said that the company falls far short by every measure.
Last month, NatSemi announced that it planned to cut its 10,000-strong workforce by 500 and to sell off its informational appliance unit and cellular baseband business. While it said these businesses have an excellent future, they require more capital than it is prepared to invest.
Source: Computerwire
