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Third Point wants Glenayre Technologies to sell
By Lisa Kerner
Charlotte, N.C., May 3 - Glenayre Technologies, Inc. investor Third Point LLC, led by Daniel S. Loeb believes that the common stock is materially undervalued and is concerned that this undervaluation will persist if the company remains an independent public company under current management, a schedule 13D filing with the Securities and Exchange Commission stated.
Loeb's additional concerns about Glenayre include:
• Management compensation at the company is substantially above scale for a company of its size;
• The board received total compensation of in excess of $750,000 in 2006;
• Management is incentivized through compensation practices to "do deals" rather than to create shareholder value.
The investor wants the board to put the company up for sale and will explore all legal and other options should the company's board and management "attempt a different, value-destructive course," the filing stated.
Third Point beneficially owns 4,415,000 shares, or 6.3%, of the company's outstanding stock. Between March 7 and May 2, the investor purchased 2,143,300 shares priced from $1.94 per share to $2.46 per share.
Glenayre is a New York-based provider of pre-recorded multi-media products.
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