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 New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesNetworkingRiverbed Technologywan optimizationacquisitionsLAN & WANjuniper networksMergers and acquisitionsmergersmanagementTraffic managementcorporate issues

Featured

Slideshows

Sizing up the NZ security spectrum - Where's the channel sweet spot?

Sizing up the NZ security spectrum - Where's the channel sweet spot?

From new extortion schemes, outside threats and rising cyber attacks, the art of securing the enterprise has seldom been so complex or challenging. With distance no longer a viable defence, Kiwi businesses are fighting to stay ahead of the security curve. In total, 28 per cent of local businesses faced a cyber attack last year, with the number in New Zealand set to rise in 2017. Yet amidst the sensationalism, media headlines and ongoing high profile breaches, confusion floods the channel, as partners seek strategic methods to combat rising sophistication from attackers. In sizing up the security spectrum, this Reseller News roundtable - in association with F5 Networks, Kaspersky Lab, Tech Data, Sophos and SonicWall - assessed where the channel sweet spot is within the New Zealand channel. Photos by Maria Stefina.

Sizing up the NZ security spectrum - Where's the channel sweet spot?
Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Show Comments