Elliot Associates says Riverbed's share price has been hampered by slowing WAN optimisation market
Activist investor Elliot Associates has launched a $3.1bn (£1.9bn) takeover bid for Riverbed, citing concerns that its valuation has been hit by a slowdown in its core WAN optimisation market.
The hedge fund hopes its $19.00-a-share bid will spark a bidding war for the vendor, which is investing heavily to reinvent itself as an application performance infrastructure player.
Having previously invested in Riverbed competitors Blue Coat and Packeteer, Elliot took a position in Riverbed in September, believing the company was undervalued, and amassed a 10.5 per cent stake in the firm.
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