Shares of Silicon Image, Inc. SIMG spiked upwards Friday afternoon following a Reuters report that the Company “is exploring strategic alternatives, including selling itself.”
The Company, “which is under activist pressure from hedge fund firm Engaged Capital LLC, is exploring its options with the help of investment bank Barclays Plc, the two people said this week,” according to the report.
On December 22, Engaged Capital demanded in a letter that the company take action to boost its share price and claimed that the company had a “bloated cost structure.” Engaged Capital also believed “the Company has a highly valuable High-Definition Multimedia Interface (“HDMI”) franchise that is obscured by the complexity of SIMG's business.”
Silicon Image, Inc. recently traded at $6.20, up 6.35 percent.
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