The Raging Capital and EZchip saga is more than entertaining. Raging forced EZchip into a go-shop, postponing the buyout by Mellanox.

EZchip did the go-shop, put together a list of 31 companies that might be interested. Only 1 signed a confidentiality agreement to get more info. But they ultimately weren’t interested.

The go-shop ended recently and it looks like Mellanox is the buyer.

However, Raging is out with some new allegations. See the best parts below.

In fact, it has come to our attention that Mr. Fruchter [EZCH CEO] has recently been posting comments on a private subscription-based message board which paint a negative picture of the business.  In our opinion, Mr. Fruchter’s imprudent comments are intentionally sabotaging the Go Shop process.  Not only are Mr. Fruchter’s comments downplaying the Company’s future business prospects in a manner completely inappropriate for a public company CEO in the midst of what should be a competitive sale process, but they reveal how his motives may be focused only on closing a transaction with his neighbors at Mellanox and misaligned with shareholders who seek to maximize the value of their shares.

Raging Capital previously publicly requested EZchip to “…update its shareholders with a current list of NPS design wins and host a conference call with an open Q&A for all shareholders in order to provide appropriate transparency into the current state of the business…”  We continue to call on the Company to be fully transparent with all shareholders, and would ask it to refrain from making statements on private message boards, particularly those that are designed to promote the ill-advised sale to Mellanox and diminish the prospects of all other alternatives for the Company and its shareholders.