Large NetManage (NETM) Holder Riley Investment Discusses Concerns About CEO and Seeks Sale of the Co
In an amended 13D filing on NetManage, Inc. (Nasdaq: NETM), 7.5% holder Riley Investment Management disclosed a letter to the company detailing its concerns about the motivation, decision-making and disclosure of CEO Zvi Alon and the Board of Directors. The firm also urged the board to retain a banker and to auction the company as expeditiously as possible.
From the letter, "Riley Investment Management holds a 7.5 percent stake in NetManage. While this is a significant percentage, we must state at the outset that this investment is in no way a reflection of our confidence in the decision-making abilities of Chairman, President and Chief Executive Officer Zvi Alon or the Board of Directors. In fact, we have serious concerns about Mr. Alon’s and the Board's motivation and disclosure, each of which will be addressed in detail below. We believe that shareholders will be best served, and value most appropriately realized, through an immediate auction of the company in which we believe NetManage could garner bids of between $5 to $6 per share, or a 25 percent to 60 percent premium to current trading prices."