A large Radyne Corporation (NDAQ:RADN) shareholder wants the company to put itself up for sale, according to a Schedule 13D/A filing with the SEC. The move is the latest in a series of requests by the activist hedge fund for the company to unlock shareholder value.

The Discovery Group, an 8.8 percent stakeholder in the company, sent a letter to the board of directors containing additional information to support its request that it pursue a possible sale of the company. The new information is based on communications with the company, large shareholders, and strategic suitors with a strong interest in acquiring the company.

"Discovery Group believes that the only rational course of action at this point is for the Board to engage an independent investment bank to genuinely solicit offers from the multiple parties interested in acquiring Radyne," said fund manager Michael Murphy. "Such a process will quickly provide the data needed to resolve the difference of opinion that currently exists between Radyne’s Board and a large percentage of Radyne’s shareholders regarding the advisability of a sale of the company."

The Discovery Group indicated that based on their valuation analysis and discussion with potential buyers, a price range of $14 to $16 per share could be achieved if the company decided to orchestrate a limited, competitive sale process. Meanwhile, the hedge fund insists that management's existing operating plan only allows for a 5 to 15 percent increase in the present value of Radyne stock.

"We are confident that a qualified advisor will receive multiple bids that are far superior to the present value of management’s Operating Plan," said Murphy. "Assuming this is correct, the best offer should be embraced, culminating in change-of-control transaction and a substantial enhancement in shareholder value."

The Discovery Group also revealed that two strategic parties have reaffirmed interest in acquiring Radyne while several others may also be interested. Combined, these factors make RADN a stock worth watching!

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