Menu
Riverbed suitor takes stake in Juniper

Riverbed suitor takes stake in Juniper

The hedge fund is pushing Juniper to pay dividends to shareholders, buy back stock, and cut costs

Activist investor, Elliott Management, which last week made an unsolicited bid to buy Riverbed Technology, this week took a 6.2 per cent stake in Juniper Networks.

The hedge fund is pushing Juniper to pay dividends to shareholders, buy back stock, and cut costs. Elliott believe these moves could raise Juniper's stock price to $US35 to $US40 per share. It closed last Friday at $US23.54.

Juniper said it "welcomes the opinions and insights of its shareholders and is always open to constructive input toward the goal of enhancing shareholder value."

Elliott suggests Juniper look to cut or divest its security and enterprise switching businesses. Juniper's security assets were reportedly on the block at one time, and the company has had execution issues in both security and switching in recent years.

+MORE ON NETWORK WORLD: SDN is disruptive at Juniper +

Elliott's move comes after last week's offer to buy Riverbed at $US19 per share, or about $US3 billion. The offer price represented a 6 per cent premium on Riverbed stock at the time.

Riverbed said it would consider the offer.

Speculation was raised this week that Elliott might push for a merger between Riverbed and Juniper, which have complementary product lines. Juniper makes switches, routers and security appliances; Riverbed makes WAN optimization and application acceleration devices.

Juniper and Riverbed have a partnership for Juniper to license Riverbed's Steelhead WAN optimization technology.

Jim Duffy has been covering technology for over 27 years, 22 at Network World. He also writes The Cisco Connection blog and can be reached on Twitter @Jim_Duffy.

Read more about lan and wan in Network World's LAN & WAN section.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags managementMergers and acquisitionsbusiness issuesNetworkingjuniper networkswan optimizationcorporate issuesacquisitionsmergersTraffic managementLAN & WANRiverbed Technology

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments