EZchip's Board Recommends Investors Vote For Merger With Mellanox Technologies

Shares of

were trading lower by around 0.50 percent Monday morning after the company's Board of Directors

for the pending merger proposal with

Mellanox had agreed to acquire EZchip for $811 million in September. On November 17 Mellanox has given EZchip 30 days to seek out a higher bid. In a letter to EZchip's shareholders, the Board of Directors unanimously recommended for the proposed acquisition. The company's Board cited: 1) the deal offers an "immediate" cash premium to investors, 2) the offer is superior to EZchip's standlone prospects, and 3) Five US and Israeli independent proxy advisory firms have offered their full support.