Starboard (Ramius) Files on Extreme Networks.. Again

  Starboard (F/K/A Ramius) filed a 13D on Extreme Networks (EXTR) disclosing a 7.2% ownership.  The Co has a market cap of $273 mm and an EV of $131 mm (including $50 mm of long-term marketable securities). Ramius has traded this stock quite a bit since March 2010, going above and below the 5% threshold several times.  In July of 2010, it delivered a letter to the BoD informing it that Ramius was nominating two directors in the 2010 election and asking the BoD to  be declassified. In October 2010, Ramius reached a settlement with the Company whereby EXTR agreed to, among other things,  (1) increase the size of the BoD to nine (2) fill one vacancy with a Ramius nominee.  In return, Ramius withdrew its two nominees. Today’s filing has a boilerplate “Purpose of Transaction” section.  However, the filing does disclose that “Pursuant to an exemption granted by the Issuer on August 24, 2010 under the Issuer’s Rights Agreement, as amended, the Reporting Persons may acquire beneficial ownership of up to 9.9% of the outstanding Shares, provided that any such purchases are made on or prior to April 27, 2011, the date on which the Rights Agreement terminates in accordance with its terms.”


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