Packeteer Inc.
(NDAQ:PKTR) shares moved up $0.26, or 2.73%, to $9.77 today after
Elliott Associates disclosed a 6.3% stake in the company and
communicated their belief that the board of directors should be
directing their attention to a prompt sale of the company.
The
activist hedge fund reasoned that the company had failed to adequately
perform and therefore should be sold in order to unlock value for
shareholders. In particular, Elliott Associates noted that the company
possesses a leading technology in one of the fastest growing segments
of the networking market but has been unable to capitalize on this
advantage.
The hedge fund also noted that the market segment
in which the company operates is becoming increasingly competitive and
therefore it may be prudent to sell while valuations are still high.
Moreover, there are probably many parties that would be interested in
bolstering their products and services with the market leading
technologies possessed by Packeteer.
Combined these factors
would make PKTR an attractive target for potential suitors if the
company was shopped by the board of directors. And obviously, any
buyout would come at a substantial premium to the current market price
making this stock one
worth following!
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