Salesforce gains after activist Elliott Management takes large stake
Salesforce (NYSE:CRM) rose 1.8% after activist investor Elliott Management is said to have accumulated a multibillion dollar investment in Salesforce Inc. (CRM).
Exact details of the stake weren't known, according to a WSJ report from Sunday, which cited people familiar.
"Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for [Co-Chief Executive] Marc Benioff and what he has built," Jesse Cohn, managing partner at Elliott, the WSJ said, citing a statement.
"We look forward to working constructively with Salesforce to realize the value befitting a company of its stature," Cohn added.
The stake comes after fellow activist investor Starboard Value disclosed a stake in Salesforce (CRM) in October. Starboard, which is run by Jeff Smith, is said to argue that Salesforce could achieve much higher margins than it's currently generating, according to media accounts of comments he made at the 13D Monitor Active-Passive Investor Summit in October.
Activist investor Jeff Ubben's Inclusive Capital also has a stake in Salesforce (CRM), according to a CNBC/13D Monitor report from October. There's another activist also involved in Salesforce, CNBC's David Faber said on Monday.
The Elliott disclosure also follows after Salesforce (CRM) earlier this month said it was embarking on restructuring that included laying off about 10% of its workforce.
Also see M&A banker Ken Moelis expects significant increase in activism this year.