Paul Singer's Hedge Fund Is Going Activist On Juniper Networks And Shares Are Climbing
Elliott already has a 6.2% stake in the company, and shares are up almost 7% in pre market trading.
The fund's strategy for the company is pretty typical of what The Street's been seeing these days. Elliott will cut costs, and push for a share buy back and dividend payouts.
Juniper is the second largest maker of computer networking equipment in the world, but its stock has underperformed the S&P 500 for the last three years, unable to take part in the general boost for stocks.
Last week, Elliott offered to by Riverbed Technology for $3.08 billion, a company that analysts expected Juniper Networks might buy itself. Elliott's $19 offer price is likely to set off a bidding war for the company, and its stock jumped 14% on the news.