Ampex fires back at ValueVest, calls investor's conclusions inaccurate

By Lisa Kerner

Charlotte, N.C., Dec. 12 - ValueVest High Concentration Master Fund, Ltd. said it received a reply from Ampex Corp. criticizing the comments in the investor's earlier letter to the company.

The Ampex letter was included in a schedule 13D filing with the Securities and Exchange Commission.

Ampex said ValueVest's assessment of the company's financial health was based on "inaccuracies and selected publicly available data" and that its conclusions are not accurate.

The company said its board and management "will continue to evaluate all potential alternatives for resolving its outstanding debt and pension obligations."

On Dec. 6, ValueVest, in its letter to Ampex, said any restructuring of the company that dilutes shareholder equity would be a breach of the board's fiduciary duty.

ValueVest would support a "reasonable restructuring" that enables Ampex to improve its operations and increases the commercialization of its intellectual property assets.

Ampex and Hillside Capital Inc. are continuing to discuss the possible restructuring of the company's debt to Hillside, according to a prior SEC filing.

Under that restructuring, Ampex will owe Hillside about $14.2 million over the next two years. ValueVest believes Ampex has the ability to raise $70 million to $80 million within a few months.

ValueVest owns 524,336 shares, or 13.4%, of the Redwood City, Calif., technology licensing company.

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