Riverbed Technology Inc said it would review strategic options and launched a cost-cutting program, three days after activist investor Elliott Management reaffirmed its offer to purchase the network equipment maker.The company's stock rose as much as 7 percent to a high of $19.27 on Thursday.Elliott, headed by billionaire Paul Singer, has been making repeated overtures to buy Riverbed since January and its latest offer is worth $21 per share."It appears the clock has struck 12 for Riverbed (and its board) as the company has finally recognized that exploring strategic alternatives might be the right direction to take this company and thus speaks to Elliott's activist view," FBR Capital Markets analyst Daniel Ives said in a note.
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 2.93% or $0.53/share to $18.61. 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 4876515.
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