Riley Investment buys more shares of Transmeta; offer to purchase company ends Thursday

By Lisa Kerner

Charlotte, N.C., Feb. 27 - Investors led by Riley Investment Management LLC increased their ownership interest in Transmeta Corp. to 8.3%, from 7.0%, with the purchase of an additional 142,400 shares of the company's stock.

The shares were acquired between Feb. 13 and Feb. 27 priced from $12.88 to $13.50 each, according to a schedule 13D filing with the Securities and Exchange Commission.

Riley and its affiliates beneficially own 998,878 Transmeta shares.

It was previously reported that Riley extended its Jan. 31 offer to acquire Transmeta for $15.50 per share to the close of business on Feb. 28.

Transmeta announced on Feb. 7 that it would identify options to enhance shareholder value with the assistance of Piper Jaffray & Co.

Riley has in the past expressed concern over Transmeta's strategic direction and stewardship, particularly in regards to the development of the company's LongRun2 technologies.

The investor has also filed a shareholder derivative lawsuit against Transmeta and its board members concerning recent bonus payments and option grants, as well as the company's refusal to provide requested information.

In December, Riley demanded it be allowed to designate four new board members to replace those who have held their positions since the company's initial public offering, according to a Securities and Exchange Commission filing.

Santa Clara, Calif.-based Transmeta develops computing, microprocessor, semiconductor technologies and related intellectual property.

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