Micrel meets with dissident investor after shareholder vote

Semiconductor maker Micrel Inc. said Thursday that members of its board met with Obrem Capital Management after the dissident shareholder's proposals were rejected by shareholders at a special meeting.

On Tuesday, Micrel shareholders voted against increasing the size of Micrel's board, seating Obrem's nominees and rescinding Micrel's shareholder rights plan. A shareholder rights plans, or "poison pill" provision, generally makes a hostile takeover more expensive for the buyer.

On Thursday, Obrem said that it believes its board candidates received "good support from Micrel shareholders," based on a preliminary vote count.

Obrem said it is discussing opportunities to enhance shareholder value with the company. The shareholder called its meeting with Micrel directors "positive and constructive."

"The meeting with Obrem management was open and friendly," said Micrel Chairman, President and Chief Executive Ray Zinn in a statement, noting that Obrem's Andrew Rechtschaffen indicated that he plans to be a long-term investor in the company.

"Both Obrem and the board are committed to moving forward in a positive way," Zinn said. "We look forward to continuing the productive dialogue we enjoy with all of our shareholders."

Obrem owns 10.7 million shares, or a 15 percent stake in the San Jose, Calif.-based company.