Harvey Partners ups stake in Zilog to 5.4%, wants company to sell

By Lisa Kerner

Charlotte, N.C., April 28 - Zilog, Inc. investor Harvey Partners LLC reported the purchase of 106,228 shares of the company's stock between March 6 and April 18 priced from $3.30 to $3.60 per share, according to a schedule 13D filing with the Securities and Exchange Commission.

The investor, now with a 5.4% stake in Zilog, believes a sale of the company is the most "productive path" for Zilog and its shareholders, the filing stated.

Harvey Partners said it intends to continue to pursue discussions with Zilog's management and its board of directors regarding its "current direction, strategy and philosophy, including actions which might be taken by the company to maximize shareholder value."

On April 17 it was reported that Zilog chief executive officer Darin Billerbeck denied the company's receipt of a March 14 letter from Harvey Partners urging Zilog to sell.

It was previously reported that Harvey Partners accused Zilog's board of ignoring the shareholder's concerns regarding the direction of the company and Harvey Partners' belief that Zilog's board should pursue a sale of the company.

Harvey Partners said Zilog's management has not been able to leverage the company's technology on its own.

In February, Zilog defended its decision to reject a $4.50-per-share offer from Universal Electronics Inc. to another shareholder, Riley Investment Management, LLC.

Based in San Jose, Calif., Zilog is a supplier of eight-, 16- and 32-bit microcontroller and microprocessor system-on-a-chip products.

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