Seeking Alpha

Activist investor discloses Riverbed stake, shares +7.1% premarket (RVBD)

  • Elliott Associates, which has a long history of taking activist positions in tech companies (and sometimes bringing about big changes), has disclosed a 10.4% stake (after taking into account various affiliates) in Riverbed (RVBD), and declares the company can "immediately increase stockholder value by implementing certain value-maximizing operational, capital structure and strategic review initiatives." (13D)
  • At the same time, Elliott praises "mission-critical position in thousands of networks," loyal customer base, and "valuable and stable [WAN optimization] platform"
  • Riverbed closed yesterday close to its 52-week low, and (in spite of maintaining a leadership position in the WAN optimization hardware market) trades far below its 2011 highs. The poor performance of recently-acquired network performance management software vendor OPNET has weighed on Riverbed's 2013 results.
Comments (2)
  • rstran
    , contributor
    Comments (42) | Send Message
    I'm glad I held this stock, looked like the ride was over until Friday.
    9 Nov 2013, 08:39 AM Reply Like
  • Alex2322
    , contributor
    Comments (307) | Send Message
    What does it mean for the shareholder to get the preferred share?
    11 Nov 2013, 01:46 PM Reply Like
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