Riley Investment Management said that it had reached a settlement with Transmeta on director nominations. Riley agreed to dismiss the derivative stockholder action that it had filed against Transmeta and to withdraw its nomination letter for the 2008 annual meeting. Transmeta will boost the size of its board to nine directors, and will include Bryant R. Riley among its nominees for election. Riley Investment Management agreed that, at least until 2010, it and its affiliates won't seek to acquire Transmeta. Riley had expressed an interest in buying the processor-technology company for $15.50 a share, a bid that Transmeta deemed too low. Riley Investment owns 1,357,364 shares (11.2% of the total outstanding).

BVF intends to explore, with SGX and others, alternatives to SGX's proposed acquisition by Eli Lilly (LLY). BVF said that the alternatives may include the continued independence of SGX, possibly financed through a non-dilutive rights offering with existing shareholders. BVF also may explore strategic collaborations with third parties or a sale of SGX, in whole or in part, under terms other than those that Lilly has proposed. Eli Lilly has agreed to buy the San Diego biotech outfit for $3 a share, or $64 million, subject to the approval of SGX shareholders. BVF owns 5,905,274 shares (28.6%).

Mario Gabelli's Gamco Investors (GBL) would like to "understand the process undertaken and valuation considered" in the company's decision to sell its entertainment division. Trans-Lux has agreed to sell the unit to private-equity firm Marwit Capital for $24.5 million. Gamco Investors holds 949,500 shares (47%).

Franklin Mutual Advisers asked the maker of cameras and film to expand its recently announced $1 billion stock-repurchase program. Franklin suggested that the company return its cash on hand to shareholders via a $6-per-share special dividend or Dutch auction. Franklin reported owning 15,575,778 shares (5.4%).

Frontline Ltd. (FRO) may seek control of Overseas Shipholding. Frontline expects to contact the company's management and other big shareholders to discuss how to boost shareholder value. Frontline has about 1.5 million shares (4.9%).

Atlantic Investment Management will continue its "active discussions" with Goodrich's management, aimed at maximizing shareholder value. It also may hold discussions with other parties about value-enhancing activities. Atlantic Investment boosted its holdings to 6,500,000 shares (5.2%) by buying 2,630,000 from May 29 to July 11 at prices ranging from $43.41 to $64.69.

Sellers Capital raised its stake to about 3.13 million shares (10.8%) from the 1.95 million (6.46%) that it had reported owning in March.

Billionaire investor Carl Icahn cut his holdings to 1.12 million shares (6.77%) from the 1.34 million (8.17%) that he reported owing on June 20.