Elliott Associates. an international fund manager and long-term shareholder of Packeteer, make an unsolicited bid of $5.50 per share to acquire the company — representing about a 42% premium over Packeteer’s closing price on Tuesday.
In an open letter, Elliot, which owns 9.8% of the common stock of Packeteer, expressed its concern over the 37% decline of the company’s stock price year-to-date and 67% decline over the past twelve months. Elliot said it hopes to work with Packeteer’s management team to negotiate a definitive merger agreement, otherwise it was willing to take the offer directly to the company’s shareholders.
Packeteer responded by saying its Board of Directors will evaluate the proposal carefully and promptly, consistent with its fiduciary duties and in light of the best interests of the company’s stockholders.http://www.packeteer.com
