Loeb builds ESS Technology stake to 8.83%

New York, July 6 - ESS Technology, Inc. investor Loeb Partners Corp. reported holding 3,135,784 shares in the company, or an 8.83% stake, according to an SC 13D filing with the Securities and Exchange Commission.

Loeb bought the stock from June 20 to July 5 at prices ranging from $1.58 to $1.74.

"In light of the history of the issuer, Loeb is of the firm belief that the issuer has only one viable option, a sale or complete liquidation of the issuer on a timely and cost-effective basis," the investor said in the SEC filing.

Loeb said it may "engage in talks with the issuer or seek board representation if this option is not pursued vigorously."

On June 19, ESS announced it had formed a strategic transaction committee to investigate strategic alternatives, including a total liquidation of the company.

ESS said its board of directors evaluated the company's current business activities and has determined that the fab-less semiconductor business model has changed significantly because of increased foreign competition.

ESS is a Fremont, Calif.-based designer and marketer of high-performance digital video processor and imaging sensor semiconductors for the consumer digital entertainment, digital home and camera-enabled cellular phone markets.

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