Marvell says not in talks with shareholder KKR on a buyout — Reuters

Marvell Technology Group Ltd on Wednesday said it is not in talks with KKR & Co on a major transaction such as a buyout, a little over two weeks after the private equity firm reported a 6.8 percent stake.

The chipmaker made the disclosure in a filing with the U.S. District Court in Pittsburgh, where it is defending against a lawsuit by Carnegie Mellon University alleging patent infringement in connection with computer disk drives.

On Tuesday, U.S. District Judge Nora Barry Fischer rejected Marvell’s bid to cut $620 million from a $1.17 billion jury verdict against the company.

Marvell, in its filing, rejected what it called Carnegie Mellon’s concern that the KKR investment might herald “extraordinary corporate transactions” that could threaten the university’s ability to collect a final judgment.

“In fact, Marvell has no present plans for an extraordinary corporate transaction (e.g., buyout, merger, reorganization or liquidation) and has not been in negotiations with KKR concerning such a transaction,” it said.

“If anything,” it added, “KKR’s recent vote of confidence, expressed by increasing its investment in Marvell, only provides further testament to Marvell’s financial strength.”

Marvell said it is in talks to obtain a bond it will need to post while it appeals a final judgment once it is entered.

When KKR disclosed its increased stake in Marvell on Dec. 30, it said it “may engage” in talks with the Hamilton, Bermuda-based company on big transactions. {ID:nL3N0K92IJ]

Marvell shares rose 4.5 percent the next day to $14.38. They have since risen another 7.9 percent, despite closing down 29 cents at $15.52 on Wednesday.

The case is Carnegie Mellon University v. Marvell Technology Group Ltd et al, U.S. District Court, Western District of Pennsylvania, No. 09-00290.

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