Light Reading
Says activist investor's offer undervalues the company.

Riverbed Spurns Takeover Offer

Ray Le Maistre
1/16/2014
50%
50%

Riverbed has kicked back a $3 billion-plus takeover offer from activist investor Elliott Management, stating that the proposal "undervalues" the application delivery control (ADC) specialist.

The hedge fund, which holds a 10.5% stake in Riverbed Technology Inc. (Nasdaq: RVBD), made its $19 per share offer on January 8 and followed it up with a public letter earlier this week, urging the Riverbed board to consider any takeover offers. (See Riverbed Under Pressure to Sell.)

But following a board meeting, Riverbed announced that it would not consider the offer as it "undervalues the Company and is not in the best interests of shareholders."

Riverbed also announced better than expected preliminary financials for the fourth quarter of 2013, with revenues expected to be in the range of $284 million to $285 million and net income in the range of $0.30 to $0.31 per share.

The vendor also announced that it expects revenues for the first quarter (ending March 31) to be between $262 million and $268 million.

The fourth-quarter numbers and first-quarter outlook "are proof points that our strategy to offer the most complete platform for location-independent computing is beginning to deliver results," stated Chairman and CEO Jerry Kennelly. "As the leading application performance infrastructure provider, we will continue to focus on delivering shareholder value through strong execution.”

That news, as well as the anticipation that an improved takeover offer might be forthcoming (either from Elliott or another suitor), sent Riverbed's share price up to $20.14 in early trading Thursday.

And Kennelly made it clear that he is not averse to acquisition offers at the right price. "While the Board will carefully review any credible offer made to acquire the company, any such offer must deliver value to our shareholders in excess of what we believe will be created as we execute on our growth plans and capitalize on the significant investments we have already made in that regard," he noted in a prepared statement.

— Ray Le Maistre, Editor-in-Chief, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
1/17/2014 | 3:00:10 PM
Re: Tech companies M&A are getting driven by non-conventional way!
They seem to be in a pretty stong position financially and customer-wise, so I would not be surprised to see Elliott Management come back with a higher offer. But if would be even more interesting if another vendor were to make an offer for Riverbed.
Vishnu Goel
50%
50%
Vishnu Goel,
User Rank: Light Beer
1/17/2014 | 4:35:37 AM
Tech companies M&A are getting driven by non-conventional way!
Ray, The current positioning of any telecom company in a M&A market is not driven by the traditional parameters like accretion of cash,geographical access or product complementarity.Nowadays depending upon the target co vision of its own growth through newer inflexion points and disruptive roots determine the future course.Most of the SPIT companies are looking for re-rated valuations by the potential acquirer.Again the core businesses are in the area of Cloud,WAN optimisation,or capex virtualisation.Vishnu Goel T&M +919810101238
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
1/16/2014 | 11:49:40 AM
Price still climbing...
Someone's expecting a higher bid... the share price is still creeping up.

Keep in mind that Riverbed is oe of those cmopanies that has a real opportunity to capitalize, or take a hit, from network functions vitrualization. It has obviously been working its way into NFV, thoughm, and has virtualized appliances. Its key partenr currently is Juniper... so that's more than one thing they have in common then as Elliott is also piling the pressure on JNPR!
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed