Elliott Management has hiked its buyout offer for Riverbed (RVBD +4.4%) by $2/share to $21/share. Riverbed, which closed yesterday at $19.85, spiked as high as $21.19 in response to the offer, but has quickly pared its gains.
Elliott, which made its original offer on Jan. 8 (it was rejected on Jan. 15), says talks with Riverbed have "yielded no indication that the Company understands the potential for a sale process to create a value-maximizing outcome."
The firm also takes aim at Riverbed's top-line performance (Q1 revenue is expected to grow 5% Y/Y at Riverbed's guidance midpoint), "excessive" opex, and "unrealistic" plan to achieve consistent 10% rev. growth.
With only three Riverbed directors up for election this year (one of whom is likely to leave), Elliott says it didn't nominate any directors prior to a Sunday deadline, and asserts "the change that is needed at Riverbed cannot be best effectuated through alternative nominations at this time."