Monday, January 13, 2014 1:19:21 PM
By Beth Jinks Jan 13, 2014 7:40 AM MT
http://www.bloomberg.com/news/2014-01-13/juniper-said-to-be-targeted-by-activist-fund-elliott-management.html?cmpid=yhoo
Juniper Networks Inc. (JNPR) has been targeted by activist hedge fund Elliott Management Corp., which will seek cost cuts, stock buybacks and other changes at the networking-gear maker.
Elliott, a New York fund run by billionaire Paul Singer, has amassed 6.2 percent of Juniper, according to a statement today. The firm is seeking talks with management and the company’s board.
Shares of Juniper, the second-largest maker of computer-networking equipment, have trailed the Standard & Poor’s 500 Index over the past three years. The Sunnyvale, California-based company also faces a management transition: Chief Executive Officer Shaygan Kheradpir took over just this month, following the retirement of Kevin Johnson.
“Juniper’s new CEO along with its existing management team and board have a unique opportunity to immediately unlock significant value at the company,” Jesse Cohn, portfolio manager at Elliott, said in the statement.
To increase the stock price, Elliott is pushing for additional share repurchases and the payment of a dividend. The fund, which may disclose its Juniper holdings in regulatory filings today, also has proposals to cut expenses and streamline the company’s products. The idea would be to boost the shares to $35 to $40 a share, up as much as 70 percent from their closing price of $23.54 on Jan. 10, the last trading day before Elliott’s announcement.
Opinions Welcome
“Juniper welcomes the opinions and insights of its shareholders and is always open to constructive input toward the goal of enhancing shareholder value,” Cindy Ta, a spokeswoman for the company, said in an e-mailed response.
Juniper shares jumped as much as 9.7 percent to $25.83, its biggest intraday gain in more than a year, after Bloomberg News first reported on the Elliott plan. The stock traded at $25.69 as of 9:39 a.m. in New York.
Juniper could cut $200 million in annual operating costs and buy back $2.5 billion in stock immediately and an additional $1 billion in 2015, Elliott said in a presentation of its proposals. The company should also review its security and switching businesses to streamline products, and “focus on projects and areas where Juniper has clear competencies and the greatest risk-adjusted return on investment,” Elliott said.
Juniper Bid
Activist investors like Elliott typically run campaigns that pressure management and directors to make changes to boost shareholder gains. Elliott’s targeting of Juniper follows a takeover offer last week for another networking company, Riverbed Technology Inc. (RVBD) On Jan. 8, the fund offered to buy Riverbed for $19 a share, valuing the business at $3.08 billion. Elliott said it made the proposal in hopes that it would elicit other acquisition bids.
Elliott also reached a standstill agreement last week with Compuware Corp. (CPWR), which spurned a takeover bid from the firm last year. As part of that accord, Elliott will nominate two directors, giving it more clout at the technology company.
Juniper, which ranks second to Cisco Systems Inc. (CSCO) in the networking market, returned to profit growth in 2013 following two years of declines. The shares were already trading at their highest level in 22 months before Elliott’s announcement, bolstered by options buying last week.
"Then there was a woman, a lion of a woman."
Recent JNPR News
- Juniper Networks Reports Preliminary First Quarter 2024 Financial Results • Business Wire • 04/25/2024 08:15:00 PM
- Coherent Corp., Juniper Networks and Marvell Deliver Public Demonstration of Industry-First Comprehensive 800ZR System at OFC’24 • Business Wire • 03/25/2024 04:00:00 PM
- Juniper Networks Announces Date of First Quarter Preliminary Financial Results • Business Wire • 03/19/2024 08:15:00 PM
- Gartner® nomme Juniper Networks en tant que Leader dans son rapport Magic Quadrant™ 2024 sur les infrastructures LAN filaires et sans fil d'entreprise pour la quatrième fois consécutive • Business Wire • 03/12/2024 05:55:00 PM
- Gartner® ernennt Juniper Networks zum vierten Mal in Folge zum Leader im Magic Quadrant™ für drahtgebundene und drahtlose LAN-Infrastrukturen für Unternehmen 2024 • Business Wire • 03/12/2024 05:45:00 PM
- ガートナー®、ジュニパーネットワークスを2024年マジック・クアドラント™のエンタープライズ向け有線・無線LANインフラストラクチャ部門のリーダーに4回連続で選出 • Business Wire • 03/12/2024 12:32:00 PM
- Gartner® Names Juniper Networks a Leader in 2024 Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure for Fourth Time in a Row • Business Wire • 03/11/2024 07:25:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 11:54:52 PM
- Juniper Networks Announces Date and Webcast Information for Upcoming Investor Event • Business Wire • 02/28/2024 09:15:00 PM
- Form DEFM14A - Definitive proxy statement relating to merger or acquisition • Edgar (US Regulatory) • 02/26/2024 09:03:51 PM
- ジュニパーネットワークス、個人・法人ユーザーに優れた体験をもたらす持続的な「クラウド・メトロ」ネットワークを展開するためKKネットワークスから指名 • Business Wire • 02/22/2024 11:53:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/22/2024 10:28:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/22/2024 10:27:45 PM
- Juniper Networks von KK Networks als Partner für den Aufbau eines nachhaltigen Cloud-Metro-Netzes ausgewählt, das Privat- und Geschäftskunden eine überragende Nutzungsqualität bietet • Business Wire • 02/22/2024 08:43:00 PM
- Juniper Networks a été choisi par KK Networks pour le déploiement d'un réseau Cloud Metro durable offrant une qualité d'expérience supérieure aux utilisateurs résidentiels et professionnels. • Business Wire • 02/22/2024 06:43:00 PM
- Juniper Networks Selected by KK Networks for Sustainable Cloud Metro Network Deployment Delivering Superior Quality of Experience for Residential & Business Users • Business Wire • 02/22/2024 11:00:00 AM
- Samsung, Juniper Networks and Wind River Collaborate to Drive Greater vRAN and Open RAN Efficiencies • Business Wire • 02/22/2024 08:01:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 10:55:43 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/21/2024 09:04:14 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/20/2024 11:03:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/20/2024 10:30:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/20/2024 10:29:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/20/2024 10:29:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/20/2024 10:29:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/20/2024 10:29:28 PM
FEATURED NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM