Riverbed Technology, Inc.(NASDAQ:RVBD) Shares Up as Elliott Reaffirms Bid

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Riverbed Technology, Inc.(NASDAQ:RVBD) shares rose in Tuesday’s pre-market session, as Paul Singer‘s Elliott Management Corp. said it “remains extremely interested in acquiring Riverbed,” noting its $21-per-share cash offer for the application performance infrastructure company still stands.

RVBD was up 4% at $19.62 in recent pre-market trading after it closed Monday at $18.86, which Jesse Cohn, portfolio manager at Elliott, noted is below its current offer as well as its initial offer price of $19 per share.

“Nevertheless, even at these levels, the stock price remains above the unaffected price of $16-$17 per share,” Cohn said, adding “shareholders clearly still expect that the board will eventually do the right thing by engaging with Elliott and other potential buyers, but unfortunately our repeated requests for access to diligence materials have been ignored.”

Cohn accused the company’s board of “depriving shareholders of significant potential value and opening the door to significant value degradation” if it continues to refuse to engage in talks with Elliott.

Analysts have a consensus price target of $17 on Riverbed Technology, Inc.(NASDAQ:RVBD) which indicates a 36% downside. The consensus rating of the stock is a HOLD with a score of 2.22. There are currently 16 Hold ratings, 1 Sell rating and 6 Buy ratings on the stock.

A recent analyst action consisted of SunTrust initiating coverage on the stock with a $21 price target and Neutral rating on April 10th.

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