Tekelec's largest shareholder pushes for stock repurchase program

By Lisa Kerner

Charlotte, N.C., March 14 - Tekelec investors Glenn Krevlin of Glenhill Advisors, LLC sent a letter to company president and chief executive officer Franco Plastina suggesting Tekelec consider a stock repurchase program.

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

Glenhill Advisors is Tekelec's largest shareholder, owning 8.9 million shares, or 12.9%, of the Morrisville, N.C., telecommunications products company's stock.

The investor said that assuming switching losses will disappear entirely in 2008 and that 2008 segment EBIT will be equal to or greater than 2006, Tekelec would generate $1.10 per share in free cash flow.

"We estimate using $200 million to repurchase shares would increase both earnings per share and free cash flow per share by approximately $0.20, making the decision highly accretive, and would create shareholder value," Krevlin said in the letter.

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