Riverbed Technology Inc said it would review its alternatives and started a restructuring program to cut costs, three days after activist investor Elliott Management reaffirmed its offer to purchase the network equipment maker. The company's stock rose 3.5 percent to $18.72 in premarket trading on Thursday.The restructuring plan was aimed at reducing annual costs by $20 million to $25 million and improve operating margins by 1-2 percent, Riverbed said in a statement.Elliott Management, which has a 10.5 percent stake in the company, has been making repeated offers to buy Riverbed since January and its latest offer is worth $21 per share.
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 remained unchanged at $18.08. In the past year, the shares have traded as low as $13.77 and as high as $22.76. On average, 1313060 shares of RVBD exchange hands on a given day and today's volume is recorded at 82489.
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