SAN JOSE (AP) — The chipmaker Integrated Device Technology Inc. said Wednesday that it will name two directors recommended by one of its major stakeholders to its board, heading off a fight over control of the board at its next shareholder meeting.
In addition, the San Jose, Calif.-based company said it agreed to work with the pair of directors selected by Starboard Value LP to find a mutually agreeable third new director. The moves will expand its board to nine members.
Starboard, a New York-based investment firm which owns about 8.5 percent of Integrated Device's shares, agreed to drop its plans to nominate directors for election to the Integrated Device board at the company's upcoming shareholder meeting and vote its shares in favor of the company's nominees.
The new directors include Peter Feld, Starboard's managing member, portfolio manager and head of research, and Jeffrey McCreary, a former Texas Instruments Inc. senior executive and a current director of MIPS Technologies Inc., Integrated Device said.
Last week, Starboard lost its bid to get two of its nominees onto the board of AOL Inc. It owns a stake of about 5.3 percent in AOL.
Integrated Device shares rose 5 cents to $5.45 per share in midday trading. They are up 16 percent from their low of $4.70 in October. They traded as high as $8.10 per share last July.