Riverbed Confirms Receipt Of Unsolicited Offer From Elliott - Quick Facts

(RTTNews) - Network equipment maker Riverbed Technology (RVBD) Tuesday acknowledged an unsolicited sweetened offer from activist hedge fund Elliott Management Corp. to acquire all outstanding shares of Riverbed for $21.00 per share in cash.

Riverbed said its board, in consultation with its financial and legal advisors, will review the Elliott proposal, taking into account the company's current strategic plan, growth initiatives, and recent performance.

Riverbed said it is executing on a strategy to accelerate growth as it captures greater share of the much larger market for Application Performance Infrastructure.

Earlier today Elliott raised its offer for Riverbed by two dollars to $21 per share in cash, valuing the new offer at $3.36 billion. Elliott said the new offer represents an "undeniable premium value" far above Riverbed's stock price before any offers.

Elliott also made it clear that it will not increase the offer any further unless it conducts a due diligence.

In January, Elliott offered to buy Riverbed for $19 a share or for about $3.08 billion, but Riverbed spurned the bid.

The hedge fund in November disclosed that along with its associates, it had accumulated a 10.4 percent stake in Riverbed, making it the largest shareholder of the company.

Elliot criticized Riverbed for not showing any interest for substantial bids from potential buyers. The fund urged the Riverbed board to allow them to conduct a due diligence review.