Monarch Activist urges Radyne to avoid proxy fight, applauds decision to seek alternatives

By Lisa Kerner

Charlotte, N.C., Feb. 26 - Monarch Activist Partners said it supports Radyne Corp.'s decision to explore strategic options.

"We hope this news marks the beginning of actions that are more conducive to the best interests of Radyne's shareholders," the investor said in a Feb. 26 letter to Radyne's board of directors. The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

Monarch also urged Radyne to "amicably resolve" Discovery Group LLC's request and appoint the shareholder's two nominees, Daniel J. Donoghue and Michael R. Murphy, to the Radyne board.

Discovery Group is the beneficially owner of some 10% of the company.

"A costly and protracted proxy contest does nothing to benefit shareholders and only furthers the rift between management and the company's most significant owners," Monarch cautioned.

In January, Monarch Activist expressed concern over Radyne's strategic direction and a "growing gap between the value of the company as a standalone entity versus the value of the enterprise in a sale."

Monarch Activist encouraged the board to hire an investment banker and explore strategic alternatives, including a possible sale of the company, according to a prior SEC filing.

Radyne is a communications products company based in Phoenix.

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