Seeking Alpha

Elliott Management obtains Juniper stake, shares +5.5% premarket

  • Activist investor Elliott Management has obtained a 6.2% stake in Juniper (JNPR), and is pushing for dividends, new buybacks, and cost cuts. The firm asserts such actions can lead Juniper's shares to rise to the $35-$40 range. (13D)
  • The disclosure comes shortly after Elliott made an offer to buy another networking hardware name, Riverbed (RVBD). Riverbed and Juniper have largely complementary product lines; might Elliott push for a merger between the companies? RVBD +0.9% premarket.
  • Less than two weeks ago, Cantor cited the potential for "shareholder-enhancing activities" as a reason for declaring Juniper a top 2014 pick. The company has $3B in net cash/investments, and currently doesn't pay a dividend.
  • Juniper rallied on Friday after an unknown trader made a $59.3M options bet.
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Comments (1)
  • Nettligent
    , contributor
    Comments (1351) | Send Message
     
    Another Pump & Dump stocks on the move.
    13 Jan, 12:59 PM Reply Like
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