Investment company Ancora Holdings Group says it wants to have a “constructive and open dialogue” with the Board of Directors at Harmonic to see if they have a willingness to assess the company’s prospects for a sale.
The activist investor wants the tech firm to consider its standalone prospects against “a potentially value-maximizing sale to one of the many logical acquirers in the space”.
As of September 30, Ancora held a 2.3% stake in Harmonic.
Its published a presentation detailing what it believes is an opportunity for “significant near-term value creation”. The document lists Ciena as a potential suitor, highlighting that the two already share a board member in Patrick Gallagher.
“We consider Harmonic to be a great underlying business, but believe the Company does not have infinite time to achieve its full potential,” Ancora said in a statement.
Ancora has the support of Romanesque Capital, which issued its own statement: “As a long-term shareholder, we have frequently shared similar concerns with leadership regarding the disconnect between the company’s stock price and its impressive fundamentals. It’s been our view that Harmonic should be part of a larger organization where synergies could be realized. We sincerely hope management and the board of directors begin to listen to shareholder feedback and initiate a review aimed at a value-maximising sale.”
Last autumn, Harmonic ran a review of its video business after receiving third-party interest, but later opted to maintain the business after deciding the financial conditions weren’t right for a sale.
