Thursday, 30 June 2016
Last updated 7 hours ago
Mar 13 2014 | 11:27am ET
Having won promises that Juniper Networks will return $3 billion to shareholders, Elliott Management is making sure it participates sufficiently.
The New York-based hedge fund has increased its stake in Juniper to 7.4%, it said in a regulatory filing yesterday. The firm, which previously owned 6.2% of the company, is Juniper’s second-largest shareholder.
Elliott said in its filing that it believes the networking company’s shares remain “significantly undervalued.”
Presumably, the hedge fund believes that the concessions it extracted from Juniper last month will help change that. In exchange for Elliott’s agreeing to drop a threatened proxy contest, Juniper said it would launch a share buyback program, cut expenses and add two new directors to its board.