Sonus Networks in talks with Legatum Capital

Legatum is Sonus' largest shareholder, with a 25 percent stake in the company. On Friday, the shareholder withheld its votes for three board nominees up for re-election at the company's annual meeting. In a statement prior to the meeting, Legatum said Sonus' directors have not taken "necessary action to change the way the company is managed or to deliver value to shareholders."

Legatum has said the company lacks transparency and is unresponsive to shareholders. The investor also cited a decline in Sonus' stock price, shareholder lawsuits and high senior management turnover.

The three directors were re-elected to three-year terms despite Legatum's action.

Sonus said that members of its management and board met with Legatum after the company's annual meeting on Friday to discuss the shareholder's complaints. Sonus said it has made a formal proposal to work collaboratively with Legatum "to resolve questions of Legatum's representation on Sonus' board of directors and other matters."

Sonus said its board believes a quick resolution is in the best interest of the company's shareholders.