Elliott Management Responds To Offer Rejection By Riverbed - Quick Facts

(RTTNews) - Activist hedge fund Elliott Management Corp. said Friday that Network equipment maker Riverbed Technology Inc.'s (RVBD) board has clearly chosen entrenchment over shareholder value, by rejecting its offer of $21 per share without so much as a discussion, and by refusing to grant Elliott and other interested buyers access to diligence. Riverbed's Board has again failed shareholders.

Elliott, affiliates of which collectively own or have economic exposure to approximately 10.5% of the common stock and equivalents of Riverbed Technology, Inc., is a multi-strategy investment firm with deep experience investing in public and private companies.

Responding to Riverbed's refusal of Elliott's offer to acquire all of the outstanding shares of common stock of Riverbed for a price of $21.00 per share in cash, Elliott said shareholders should be outraged that the Board is not acting in a manner consistent with its fiduciary obligations. The clear and correct path forward for the Company is to engage in a dialogue with Elliott and other interested buyers so that they can conduct expedited diligence toward exploring a value-maximizing transaction.

Earlier today, Riverbed Technology announced that it has unanimously rejected Elliott Management Corp.'s sweetened $21.00 per share unsolicited offer, saying that the proposal undervalues the company and is not in the best interests of shareholders.

On February 25, Elliott Management raised its offer for Riverbed Technology to $21.00 a share in cash.

In January, Elliott Management had offered to buy Riverbed for $19.00 a share or for about $3.08 billion. However, Riverbed rejected that offer saying the proposal undervalued the company. The offer valued Riverbed at about $3.36 billion.