Boston, MA 02/04/2014 (wallstreetpr) – In a statement released on Monday, Elliott Management, the activist hedge fund led by Paul Singer, indicated that it may start a proxy battle against Juniper Networks, Inc. (NYSE:JNPR).
Run-through Of Elliott’s Association
Elliott had bought a 6.2% stake in Juniper Networks, Inc. (NYSE:JNPR), three weeks earlier. After which, the hedge fund came out with strategies in a bid to increase the return to the shareholders. The recommendations include alignment of operating expenses, an immediate $2.5 billion buyback and a commitment to generate 50% free cash flow. Elliott has mentioned in the statement that it has received tremendous support from Juniper’s shareholders, the investing community as well as analysts for its proposed recommendations to increase shareholdervalue.
Overlooking Potential Proxy Fight
Jesse Cohn, portfolio manager at Elliott stated that they have exchanged information and idea with the fellow shareholders as well as the analysts in direction to set measures appropriate to generate the value. He added that Elliott has assembled a team of executives who have in-depth knowledge of the industry functioning and operational capabilities to transform the plans into reality. Cohn’s statement implies that they have chalked down the list of executives who would be nominated to be included as board of directors, if the company fails to take action to its suggestions.
Cohn has stressed on the fact that the firm is willing to work in collaboration with Juniper, in order to implement the steps spelled out in Shareholder value Plan. Juniper Networks, Inc. (NYSE:JNPR) has responded to the firm stating that it will go through the recommendation submitted by Elliott, while it added that the company has an enriched experience in creating and paying cash to its shareholders.
Notably, Elliott is not the only hedge fund to raise these strategies as other firm Jana Partners is also among the firms battling for improvement within the company.
