© andrzej thiel Components | March 07, 2013

Tessera backs CEO

Allegations in a private letter from Tessera shareholder Starboard Value LP claim "possible improper conduct" by the CEO involving "an inappropriate relationship with a female employee of the company."
The letter of Starboard Value LP (holds 7%) has been characterized by the Tessera board as an attempt at blackmail. Furthermore, Starboard is said to have not provided any backing for its allegations. The board is clear that it unanimous supports CEO Robert Young.

Tessera revealed in an open letter of response to Starboard Value (on March 4, 2013) that Starboard sent a private letter to the Tessera board (on February 28, 2013). Here it made allegations against CEO Robert Young and called for "appropriate action" to be taken.

The February 28 letter stated that, "if the Board did not consent to Starboard's proposals, Starboard would "proceed with an election contest to replace a majority of the Board."

This was followed up by a public letter sent on March 1, 2013. However, here the allegations were not repeated. Instead it dealt with business proposals for the company.

Starboard's "private" letter was a transparent attempt to force the Board to fire Dr. Young or else face the publication of that letter and its allegations. But neither the Board nor Dr. Young is prepared to be blackmailed into a course of action by Starboard that is not in the best interests of stockholders of the Company by threats of publishing unfounded and scurrilous accusations. The Board asks that you promptly either provide details that would enable us to follow up via our established processes or else withdraw the allegations.

In the meantime please note that the Board unanimously stands behind our CEO Dr. Young.
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