Seeking Alpha

Juniper strikes board deal with Elliott. Nokia exec downplays merger talk.

  • Activist investor Elliott Management (6.2% stake) has reached a deal with Juniper (JNPR) under which Juniper will nominate telecom industry vet Kevin DeNuccio (now the CEO of Violin Memory) and ex-Nortel COO Gary Daichendt to its board, and won't nominate more than 7 incumbent directors at its annual meeting. (13D)
  • Last week, Juniper announced a slew of cash-return and cost-cutting moves that dovetailed with Elliott and fellow activist Jana Partners' wish lists.
  • Meanwhile, Nokia Solutions & Networks (NOK) chief Rajeev Suri is downplaying a recent report stating Nokia is considering a bid for Juniper.  "We have a partnership with Juniper and we will seek ways to expand that partnership ... That's all."
  • Suri also says NSN, whose parent company is set to receive a big cash infusion via the Microsoft deal, is on the lookout for smaller acquisitions. "We don’t have to do a deal for the sake of a deal ... We will look for opportunities out there."
  • JNPR +1.5% AH.
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Comments (4)
  • DWD Investing
    , contributor
    Comments (9873) | Send Message
     
    I think Timo would have been more forthcoming:"No, we don't want to merge with Juniper. We sort of proved that we can kinda make some little revenue this year and that is our plan. Like Suri says, we like Juniper and we want to work with them, but we don't want to eat dinner with them. Even though a merger would make Nokia/Juniper the largest network company in the world and drive revenues through the roof, we can't stand the taste of our new name, that all of you haters would call us: "Jokia." ([Whispers to Suri but the mic is on], "Good thing you took my advice and told everyone a big NO to any type of merger or buyout, otherwise the SP might go over $8 again. I know everyone wants that to happen, but that's too big of a step. After we analyze it, we may, kinda, sort of might want to, in maybe 20 years, think about buying Juniper. So don't get ahead of yourself Suri.)
    24 Feb 2014, 06:23 PM Reply Like
  • ted lujan
    , contributor
    Comments (946) | Send Message
     
    Go for it Mr. Suri,
    Make some good acquisitions. Just do not make a lot of stupid mistakes. Caution is the better part of valor.
    24 Feb 2014, 07:53 PM Reply Like
  • sidiji
    , contributor
    Comments (227) | Send Message
     
    My respect for Suri increased again...merger of equals at jnpr $19 made a lot of sense, chasing expensive tail here after jnpr insiders have bought jnpr up to $29 and hedged/sold off nokia down to $7 makes very little sense.

     

    Good to see they're being cautious with shh money!
    25 Feb 2014, 06:16 AM Reply Like
  • Kamminga
    , contributor
    Comments (186) | Send Message
     
    As long as "no hurry" doesn't translate into "o dear we have excess capital". So far so good.....
    25 Feb 2014, 07:37 AM Reply Like
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