LSI Corp. (NYSE:LSI) shares rose $0.15, or 2.27%, to $6.77 today after the company announced that it would sell its Mobility Group to Infineon for up to $500 million. The move marks yet another milestone in a restructuring effort that had many shareholders questioning the chief executive. Shareholders now seem ready to embrace the company's turnaround as it narrows its focus going forward.

The sale of LSI's Mobility Group should allow the company to increase its focus on its own businesses - particularly, the integration of integrated storage specialist Agere Systems which it acquired in December for $4 billion. The sale will also save the company about $25 million in expenses next year while infusing it with cash, despite the fact that the transaction went through at only a 1.7x multiple.

Analysts remain divided on the stock with some taking a very bullish stance and others taking a very bearish stance. All seem to agree that the sale of its Mobility Division was a move in the right direction; however, many insist that the company may continue to face troubles with its integration that led to a few missed quarters in the past. Regardless, this is definitely a stock worth watching!

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Nymex Holdings (NYSE:NMX) shares are trading up strongly in early morning hours after the energy futures company admitted to preliminary buyout talks but could not guarantee that the talks would result in a sale of the company. Many shareholders have been anticipating further consolidation and this move by Nymex only confirms the strength of M&A in the exchanges market.

News of the possible buyout came after the company's chairman and chief executive held a meeting with analysts in which they admitted talks were in progress. After the research note was published by analysts, the company quickly confirmed the note with their own statement:

"Since discussions have been preliminary, there can be no assurance that the company will enter into any transaction ... although the chairman indicated his belief that any transaction would have to be at a meaningful premium to the company's current share price."

Rumors have also been circulating that the company could be a target of NYSE-Euronext whose chief executive said not long ago was looking for potential acquisitions to increase its foothold in the futures business. Whether or not this is the bidder remains unclear; however, we definitely know there are potential bidders with deep pockets.

The statement also suggested that the company could benefit from $250 million in cost savings in addition to revenue gains from a European expansion and new product lines. The company is also working internally on methods to cut costs and reduce expenses to increase its earnings per share and jump its stock price.
 Regardless, this is definitely a stock to watching moving forward!

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Vitesse Semiconductor (OTC:VTSS) directors may face some opposition in coming months as Chapman Capital prepares to do battle. The activist hedge fund announced its intentions today to investigate management's backgrounds, affiliations and board qualifications. Shareholders are hoping that this move could forces changes at a company that hasn't held a board meeting in over two years.

Chapman Capital's recent Schedule 13D/A filing is the latest in a long line of letter criticizing the company for unethical - and allegedly illegal - actions on behalf of management and the board. The largest problem is the fact that the company hasn't had a reasonable annual meeting in more than two years. The company applied to the SEC for relief but was turned away, which prompted Chapman to launch a campaign to find evidence of misconduct.

Robert L. Chapman, Jr., Managing Member of Chapman Capital, commented, "Nearly two years has passed since Vitesse's owners have been allowed to attend a shareholders meeting to elect directors. Instead, foisted upon Vitesse's owners are these 're-treaded' substitutes who have been admitted to Vitesse's boardroom without the legitimacy of being vetted, much less elected, by the owners to whom they purport to report. To Chapman Capital, Vitesse's Board and senior management seem quite anxious to perpetuate the absolute veto power that has allowed them to discriminate against director candidates who may 'disrupt' their stock option and cash compensation enriching party, while holding them accountable and potentially opening 'back-dated option closets' concealing a skeleton or two."

An additional very detailed letter outlined the evidence obtained thus far while the hedge fund also provided a hotline through which others in the industry could call in reports. If change is effected, it could mean hefty profits for shareholders benefiting from a turnaround. This makes VTSS a stock worth watching!

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