March 18, 2013
/PRNewswire/ -- Starboard Value LP (together with its affiliates, "Starboard"), one the largest shareholders of Tessera Technologies, Inc. (NASDAQ: TSRA) ("Tessera" or the "Company") with approximately 7.6% of the outstanding common stock of the Company, announced today that it has delivered an open letter to the shareholders of Tessera, the full text of which is included below:
March 18, 2013
Open Letter to Shareholders of Tessera Technologies, Inc.
Dear Fellow Shareholders:
Starboard Value LP, together with its affiliates ("Starboard"), currently owns approximately 7.6% of the outstanding common shares of Tessera Technologies, Inc. ("Tessera" or the "Company"), making us one of the Company's largest shareholders. Our interests are directly aligned with yours and we believe that there is significant value to be realized at Tessera.
Starboard has a long history of working constructively with management teams and boards of directors of undervalued and underperforming public companies to identify and execute on opportunities to unlock value for the benefit of all shareholders. With most of our portfolio companies, we are able to accomplish our goals and create shareholder value by obtaining minority representation on their boards of directors. However, in Tessera's case, we do not believe a change in a minority of its board of directors (the "Board") will have the desired impact because of the consolidation of power around the Company's chairman,
, and its CEO,
, and the other directors' apparent unwavering support of these individuals despite serious allegations against them.
During the course of this proxy contest, the Company is going to attempt to make Starboard appear unreasonable for not accepting the Company's settlement offer to add two independent, Starboard-recommended candidates to the Board, and will accuse us of trying to take control of the Board. We are writing to you now to explain why the Company's offer is inadequate and entirely unacceptable to us, and why you, too, should find it unacceptable. We also want to make clear to you that our goal is not to control the Board, but to reconstitute it with extremely accomplished and independent individuals who have the requisite skill sets to lead Tessera on a path to long-term success. As we proposed to the Company in our settlement offer, we only intend to seek the election of one direct representative of Starboard.