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Elliott ready to give $3.36 billion for Riverbed Technology

Staff writer |
Hedge fund Elliott Management increased its offer for Riverbed Technology by 9 percent to $3.36 billion and said the company had ignored offers from other potential buyers.

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Elliott Management offered $21 per share in cash, representing a 5.8 percent premium to the stock's closing price on Monday, and said it could raise its bid if allowed access to the company's books for due diligence.

The hedge fund, which has a 10.5 percent stake in the company, said Riverbed continued "to ignore the substantial acquisition interest in the company (at values well above our previous offer) that we know has been brought to the board's attention."

Riverbed said it would review Elliott's proposal. The company rejected a previous offer of $3.08 billion, or $19 per share, from Elliott. Riverbed's revenue growth has slowed through each quarter of fiscal 2013, and the company forecast growth of 3.5 to6 percent for the current quarter.

The hedge fund called Riverbed's revenue growth target unrealistic, and said the company is "desperately spending money in a frantic effort to rejuvenate its moderating growth".

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