After adoption of protective measures of poison pill by Mitek for activist investor, on Tuesday, Mitek Systems Inc., has not only been asked to discard it’s so called “poison pill” by the Hedge fund Elliot Management but also hinted its intentions to push the changes in Mitek’s board. The Elliot asked the same in want of buying more of the Mitek’s stock.
$34 billion fund Elliot, for buying about 14.9 percent shares of the Mitek’s stock, wrote the letter to its board asking to come out of the effects of recently performed poison pill tactic.
Without the disclosure of its stake in Mitek, Elliot, including the swaps and common stock, has been claiming to be its biggest share holder.
Earlier Mitek has refused its acquisition proposal by the ASG which has been, at the price of $10 per, pushing to buy the Mitek. ASG technologies is also owned by the hedge fund and it this point of ASG approaching to buy the Mitek, Elliot has been rising the pressure upon Mitek to consider the ASG’s proposal. Over the past month, Mitek’s share value has risen by 8.64 percent with value of $9.48 at close of business on Tuesday.
Earlier in August, before the Mitek’s announcement of its two top executive i.e. long serving CEO and CFO who would be shortly leaving the company, ASG’s CEO approached the Mitek with the proposal of acquisition. The ASG made the proposal after announcement of executive change as stated Mitek last month for refusing the proposal.
Elliot in its current letter also stated that Mitek is not properly connected with and took on the entrenchment policy towards the hedge fund and emphasized to focus on maximizing the company’s value, requested to start a conversation with ASG upon its proposal.
Elliot has frequently been asking for its own member in Mitek’s board by declaring current directors as over loaded for being member of several boards. December 7 is the deadline for director’s nominations.