Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Zilog Inc - ZILG

New York, NY (PressExposure) December 16, 2009 -- Levi & Korsinsky is investigating the Board of Directors of Zilog Inc. (“Zilog” or the “Company”) (NasdaqGM: ZILG) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Ixys Corporation (NasdaqGM: IXYS) . Under the terms of the transaction, Zilog shareholders will receive $3.5858 in cash for each Zilog share of common stock they own for a total transaction value of approximately $62.4 million.

For the quarter ending September 26, 2009, Zilog reported gross profit of $3.684 million and net income of $1.635 million as compared to gross profit and net income of $2.715 million and $352 thousand, respectively, for the prior quarter. The investigation concerns whether the Zilog Board of Directors breached their fiduciary duties to Zilog shareholders given that (i) the Company has just reported a quarterly increase of 35% in gross profits and 364% in net income; (ii) the offer price is only a small premium over the $3.12 price the Company's shares traded at as recently as November 30, 2009; (iii) the Company has more than $2.00 per share in cash with no debt; (iv) at least one analyst set a price target for Zilog stock at $6.00 per share; and (v) the Zilog Board of Directors agreed to a strict "no solicitation" provision and agreed to pay a $1.9 million termination fee that will all but ensure that no superior offer will ever be forthcoming.

If you own common stock in Zilog and wish to obtain additional information, please contact us at the number listed below or visit [http://www.zlk.com/zilg1.html].

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.

CONTACT : Levi & Korsinsky, LLP, Joseph Levi, Esq, Eduard Korsinsky, Esq, 30 Broad Street - 15th Floor, New York, NY 10004, Tel: (212) 363-7500, Fax: (212) 363-7171, http://www.zlk.com

About Levi & Korsinsky, LLP

Contact :
Joseph Levi
Levi & Korsinsky, LLP
New York, NY 10004

Press Release Source: http://PressExposure.com/PR/Levi_|_Korsinsky,_LLP.html

Press Release Submitted On: December 16, 2009 at 5:17 am
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