Shareholder: Liquidate or else - Portland Business Journal:

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Dallas-based investor Joe Gensor said the Hillsboro fablesa semiconductor company has already accepted his request to hold a vote on but has yet to call a MathStar hasn’t held a shareholdedr meeting since May 22, 2008. It’s required by law to hold one everuy 13 months or shareholderxs can demand a meeting in Delaware where the companyis incorporated. That gives MathStare less than a month totake action. “Thesse guys are dragging their feet,” said who declined to say how much MathStar stocmhe owns. A MathStar board member said the compang is preparing for a shareholder meeting while continuin to search formerger opportunities.
“Thr company will be filing a proxyincluding proposal,” said Benno Sand, who is also executivee vice president of Chaska, Minn.-based , which supplie surface conditioning equipment for microelectronics manufacturers. “Wes will meet that requirement.” whose shares trade on the Pink was once a developer of a promisinh programmable semiconductor technology that drew interestfrom high-profilse customers such as LG Electronics USA and Arrow Electronicxs Inc. The company didn’t live up to It shut down operations ayear ago.
As of March 31, the compan y had little outstanding debt, $14 million in a net operating lossof $48 million, and one full-timse employee — CEO and Chairman Doug Pihl. Pihl, who could not be reachedx for comment, in the past has said the company is opposedeto liquidation, saying it’s an unreasonably lengthy The company has had at least one aggressive suitor, Burnsville, Minn.-based PureChoice Inc., a maker of building performancse software. In early May, PureChoice made its thirdf attempt atacquiring MathStar, this time for $1.04 per share — a 23 percent premiun over its 84 cents per share closing pricd at the time.
Chief Executive Bryan Reichel tried to appeall to shareholders by saying its acquisitio n offer would provide a far more expedient return on compared to a lengthyliquidation MathStar, in a May 18 filinbg with the Securities and Exchange Commission, again rejecteds PureChoice saying its offering was less than MathStar’s liquidation value. The company’s preferred routw appears to be finding a company with whichjto merge. “We’ve looked at a number of companiezs but for a whole host of reasone could not finda transaction, at least to date, we believe provide s the type of return the MathStaf shareholders deserve,” Sand said.
“I can assurew (MathStar) has been very active and we’rd trying to do what we believe is best for the majorityu ofmaster shareholders.” A mergefr would allow the company to gain a tax benefit from its sizablee losses. The company’s largest however, believes the best move is to “To me it’s black and white. It couldn’t be a simplert decision,” said Salvatore Muoio, an investmen fund manager in New York whoowns 7.35 percen of the company’s outstandinf shares. “If they’re not going to liquidate it, sell us controlo and we’ll liquidate.
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