Two people who were familiar with the matter told Reuters that Riverbed Technology Inc had not been considering a sale. The claim made by the sources, who refused to be named as the matter is private, was contrary to a media report which made shares of Riverbed jump early on Wednesday.
Bloomberg earlier reported that Riverbed had tapped Goldman Sachs Group Inc to mull over options including a possible sale of the company. The news agency also said word of a potential sale of Riverbed had sparked informal interest from private equity firms, which were looking to offer a leveraged buyout. Riverbed's shares increased 8% to USD19.04 per share on NASDAQ Wednesday after the Bloomberg report.
Reuters pointed out that Goldman Sachs helped Riverbed earlier in the latter's initial public offering back in 2006. One of the sources said Goldmand Sachs will help Riverbed in defensing itself against activist investor Elliot Management. Two sorces reiterated however, that even the bank is not working with Riverbed on a possible sale of the company.
When asked by Reuters about the sources' claim, the representatives of both Riverbed and Goldman Sachs refused to provide a comment.
Elliott Management is a known investor who pushes for board management changes or a company sale in companies it has an equity interest on. On Friday, it was reported that Elliott had acquired a 10.4% stake in Riverbed and insisted that the company should undergo a strategic review.
Riverbed, Reuters noted, made certain steps to ensure that no takeover would happen with Elliott's entry. On Monday, the company's board of directors approved a new stockholder rights plan that allows the company to defend itself from individuals or institutional investors obtain 10% to 20% interest of Riverbed stock.
Riverbed also added that it would encourage open dialogue with its shareholders, including Elliot, in order to create value to shareholders.
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