NEW YORK (AP) -- Investment firm Starboard Value said Monday that it has sent a letter to Emulex Corp., arguing that the data and networking equipment maker is undervalued and needs new leadership.
Starboard controls 7.9 percent of Costa Mesa, Calif.-based Emulex's stock.
Starboard's letter, addressed to Emulex's board and CEO, said that the company's shares have fallen about 40 percent over the last five years, doing worse than a group of similar companies and the broader market.
The stock closed up 12 cents, or 1.6 percent, at $7.85 Monday. It's up 7.5 percent this year.
The investment group also criticized the company's board, saying it "has remained stagnant with little change despite dismal performance." According to Starboard, the average tenure among the company's directors is 15 years.
The letter recommends appointing a new board of "independent directors and shareholder advocates" to review Emulex's businesses and "determine the right strategy to enhance shareholder value."
Calls placed to Emulex Monday afternoon were not immediately returned.