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Semiconductor Today Magazine


10 July 2006


Shareholder demands sale of Vitesse

Vitesse Semiconductor Corp, a maker of indium phosphide (InP) based devices and other electronic components, has received a demand from its largest shareholder to put the company up for sale. Chapman Capital, which holds over 16m shares in Vitesse, said the semiconductor company would be worth more than $4.50 per share if sold.

The demand comes as Vitesse faces an investigation by the U.S. Securities and Exchange Commission for backdating option grants to senior executives.

"Chapman Capital demands that Vitesse, following financial restatement and rescission of all improperly granted stock options, conclude a full scale auction of the company," the Los Angeles-based activist hedge fund said in a press release accompanying an SEC regulatory filing.

Nasdaq delisted Vitesse late last month for failing to file a quarterly financial report with U.S. securities regulators. In response, the company said it was committed to being relisted, and is taking measures to ensure the accuracy of its financial reports and the filing of its outstanding second-quarter form 10-Q as soon as possible.

Visit: http://www.vitesse.com