Paul Singer Seeking Shares in Tech Company worth $3 Billion Plus

January 13, 2014 James Heinsman In the News

Paul Singer of Elliot Associates

Paul Singer of Elliot Associates

Paul Singer’s Elliot Associates hedge fund began a bid to buy computer networking company Riverbed Technology for $19 per share for a total expenditure of $3.1 billion.
Singer is a billionaire veteran activist investor whose Elliot Associates oversees about $23 billion. Observers speculate that this move is a sign of things to come, predicting that 2014 could be a year that activist investors like Singer influence the markets in exceptional ways.

Shares of Riverbed Technology jumped 11 percent, closing on Wednesday at $19.93 after the offer was made public. The rise past the offering price could imply that higher bids are in the offing, according to some investors.
Elliot portfolio manager Jesse Cohn wrote the following in a letter to Riverbed’s board of directors.

“We believe in the quality of Riverbed’s assets. However, Riverbed’s valuation has been impaired by slowing growth in its core WAN optimization market and by significant investments in both acquisitions and operating expenses undertaken to diversify away from the core WAN optimization business.”

Elliot Associates, Paul Singer, Riverbe Technology,

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