Feeds

Small bird wants SGI to fly in private

Henpecks board over low share value

Beginner's guide to SSL certificates

A major investor in SGI wants to move the infamously fallen server vendor to the relative safety of the private sector.

According to a regulatory filing yesterday, Whippoorwill Associates will begin discussions with the company's board of directors and leading stockholders about "unlocking the company's true value," including a possible going-private gesture.

Whippoorwill disclosed to the US Securities and Exchange Commission that it owns 1,129,582 shares of common stock — or about 9.8 per cent of the company. It said it purchased the stake for about $20m.

In a 13D filing, the investment management firm contends that as few of seven SGI shareholders own 77 per cent of company stock. This concentration of ownership "has resulted in a stock price which does not fully reflect the Company's intrinsic value or the substantial operating progress achieved over the past year."

Once a dominant fixture in Silicon Valley, SGI has battled to resurrect itself after emerging from bankruptcy in 2006. Since then, the firm has concentrated on selling Xeon-based servers to a broader market rather than a niche focus on the visualization and Itanium space.

Its "progress," it would seem, has not been reflected in its stock value. Over the past year, SGI shares have lost about 70 per cent of their value. In March 2007, SGI's stock price hovered around $30. This March, shares dipped as low as $9.34. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.