Elliott Management has increased its offer for Riverbed Technologies by more than 10%.
The activist hedge fund boosted its bid to $21 per share, up from $19, valuing the new offer at more than $3.3 billion. But it said it would not increase the offer until Riverbed allowed it to conduct due diligence—and criticized the networking equipment maker for refusing to put itself up for sale.
Indeed, Elliott does not really want to buy Riverbed itself. It hopes it can force the company to listen to the much higher offers it says have been made for the company.
"We believe shareholders, the actual owners of the company, should be outraged by the board's behavior," Elliott's Jesse Cohn wrote. "This behavior is inconsistent with the fiduciary responsibilities of a public company board, whose obligation is to maximize value for stockholders."
Riverbed, which rejected Elliott's lower offer last month, said it would review the new bid.