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Wednesday, January 8, 2014

Hedge fund Elliott offers to purchase Riverbed, higher bid expected, (NASDAQ: RVBD)

Activist hedge fund Elliott Management Corp offered to purchase network equipment maker Riverbed Technology Inc for about $3.08 billion in cash, an offer analysts said was likely to be a precursor to a higher bid.Riverbed shares rose as much as 14 percent to $20.29 on Wednesday, above Elliott's offer price of $19 per share.Gabelli & Co analyst Hendi Susanto said the offer was below his valuation of $25 per share for Riverbed, based on 14 times 2014 earnings.Elliott affiliates said in November that Riverbed was significantly undervalued and should consider a strategic review.

Riverbed Technology, Inc. (Riverbed) has developed solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs). Shares of RVBD traded higher by 12.04% or $2.15/share to $20.00. In the past year, the shares have traded as low as $13.77 and as high as $20.74. On average, 3465430 shares of RVBD exchange hands on a given day and today's volume is recorded at 10545357.