Hoping to maximize profits, C. Robert Coates, a major shareholder in Netro Corporation (Nasdaq:NTRO), is urging the company to buy back stock at $6 per share.
Coates owns 986,500 shares, or 1.9% of the company's equity.
He made his proposal to the company on October 19, when Netro was trading at $3.2.
Netro released surprisingly good results for the third quarter of this year. But Coates has apparently given up getting a return on his investment. Accordingly, on October 8 he filed a lawsuit with a Delaware court to invalidate restrictions on takeover measures, including a poison pill rights corporate plan dating from August.
Rumors have been circulating that Mexican tycoon Carlos Slim Helu wants to take over Netro. The lawsuit raises speculaetion that Coates might be associated with Helu. He may believe that an acquisition by Helu could boost Netro shares.
Meanwhile, Coates is trying to persuade Netro to repurchase stock amicably.
Coates says that Netro turned down takeover proposals, but meanwhile has not announced any business developments. The buyback would serve instead to reward investors for their investment in the company, Coates said.