Ampex Corporation (NDAQ:AMPX) revealed in a 13D filing with the SEC yesterday that ValueVest High Concentration Master Fund had accumulated a 8.3% stake in the company. This transaction took place after several communications between management and the fund involving a possible buyout or sale of the company's intellectual property.

According to the filing, the fund is interested in:

"In a letter to the chief executive officer of the Issuer dated September 13, 2006, the Investment Manager once again confirmed the Master Fund's interest in acquiring or making a further equity investment in the Issuer. In that letter, the Investment Manager also indicated that it would like to discuss an alternative transaction in which the Master Fund would acquire the Issuer's Data Systems business and all of its intangible assets other than those patents which the Issuer was currently licensing or litigating and their related patent families. The Investment Manager indicated that it believed that this alternate asset transaction, which would not be subject to any financing contingency or condition, could be implemented relatively quickly and would give the Issuer the opportunity to realize immediate value for its shareholders and to generate further shareholder value through its ongoing patent licensing and litigation efforts." (Read More)

The company said they would discuss this matter with ValueVest after the next annual shareholders meeting; however, there is no indication that such a meeting took place yet. Obviously, any transaction involving a purchase of the company's intellectual property or company would come at a significant premium to the current market price. The company is trading below enterprise value, down over 40% on the year, as it recently swung to a profit in Q3. This is definitely a stock worth watching as the company prepares for an official proposal.

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