& cplSiteName &

Riverbed Under Pressure to Sell

Ray Le Maistre
1/14/2014
50%
50%

Caffeine levels at hedge fund Elliott Management must be at record levels: Only hours after firing a salvo across the bows of Juniper Networks, Elliott has increased the pressure on application delivery control (ADC) specialist Riverbed to accept the unsolicited takeover offer made last week. (See Riverbed Receives Takeover Bid and Investor to Juniper: 'You Suck'.)

Elliott offered $19 per share for Riverbed Technology Inc. (Nasdaq: RVBD)'s stock on January 8: Riverbed said it would "review" that offer but has since been silent ahead of a board meeting set for later this week.

Now Elliott, which holds a 10.5% stake in Riverbed, has published a letter that it sent to the Riverbed board, noting that it "has received overwhelmingly supportive feedback from shareholders and equity analysts for the idea that Riverbed should fully explore Elliott's offer to acquire Riverbed, as well as the other acquisition interest that exists."

Elliott is pressing Riverbed to "explore Elliott’s offer and any other credible interest," and "should attempt to solicit the highest price possible for the Company." Failure to do so would send the share price down from its current $19.93 to its pre-offer level of around $14-15, suggests Elliott, and "rejecting the idea of a sale evaluation and instead offering shareholders assurances that the Company has a plan for generating value as it moves into a difficult and uncertain future is an extremely risky proposition."

Rejection is certainly a possibility, as Riverbed last November instituted a stockholder rights plan, also known as a "poison pill," to deter unwanted takeover bids.

Elliott appears hopeful its $19-per-share offer can flush out higher bids, and Riverbed's current share price suggests other investors believe those bids are a real possibility. Various analysts cited in a Bloomberg report believe a higher bid might come from the likes of IBM Corp. (NYSE: IBM), Cisco Systems Inc. (Nasdaq: CSCO), or Juniper Networks Inc. (NYSE: JNPR), though any sort of offer from the latter seems most unlikely given this week's events.

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

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/14/2014 | 11:24:13 AM
ADCs
I believe one view on the future of ADCs is that many of the functions could become integrated into other gear, so it would mke sense if there's interest from one of the bigger vendors. Juniper buying Riverbed might go against Elliott's pleas that Juniper go on a diet.
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives