Activist Action: The Reason Behind Identiv's Recent Pop

Shares of Identiv Inc INVE spiked upward on Thursday following the release of a letter from activist investor David Callan to the company's Board of Directors.

Following the release, the stock spiked approximately 3.9 percent from $10.50 to $10.91 shortly before 11AM ET on Thursday.

Callan noted his frustration with the Board, as it had refused to communicate with him despite repeated attempts. Rather, the Board had taken an adversarial approach to the investor.

In the letter, Callan wrote, "You have elected to spend shareholder money on legal fees and treat me as an enemy rather than speak with an owner of your company who's only interest is what the Board's should be. I find this outrageous and offensive that I am spending money on legal fees both personally and as a shareholder of the company."

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The shareholder's letter also questioned the company's lack of communication.

Callan indicated that investors and the public are only made aware on conference calls or during investor presentations of Identiv's relationships with such "impressive companies" as Walt Disney Co DIS, Verizon Communications Inc. VZ, Cisco Systems, Inc. CSCO, NXP Semiconductors NV NXPI and Nintendo Co., Ltd (ADR) NTDOY.

After discussing the need to evaluate the company's strategic alternatives, Callan believed "that Identiv could be worth between $22 and $27 per share to a third party acquirer, implying a premium of around 120 percent."

In a call to action, Callan urged the Board to "immediately retain a nationally recognized investment bank and establish a special committee of independent directors with its own legal and financial advisors to conduct the strategic alternatives review to maximize shareholder value, including the sale of the company."

Following the events on Thursday, Callan told Benzinga that he was pleased with the stock's favorable reaction to the letter and that other investors had voiced support for the Board to respond.

Callan hoped that management and the Board of Directors would "reconsider their position and with open minds, immediately begin thoroughly exploring all strategic alternatives as this is clearly in the best interest of shareholders at this time."

Identiv Inc recently traded at $9.86, down 4.64 percent.

Image credit: Celine Nadeau, Flickr