Elliott Management's new $21/share offer for Riverbed (RVBD +4.1%) amounts to a stalking horse bid meant to drive up the WAN optimization hardware vendor's valuation ahead of a sale to a third party, think FBR's Daniel Ives.
Ives expects Riverbed to eventually be sold to a P-E firm for $24-$25/share. "This is just Elliott moving the process along ... This is them getting more aggressive."
Elliott mentioned in its letter "other potential buyers have expressed their acquisition interest" to Riverbed, and claims these unnamed parties "appear to be willing to offer materially more for the Company" than Elliott is.
Riverbed, for its part, has said it will review Elliott's offer.