Jerry Kenelly's Riverbed board has declined billionaire activist investor Paul Singer's Elliott Management's unsolicited bid for Riverbed. A Riverbed statement said: "After consideration with independent legal and financial advisors, [the firm] has unanimously determined not to pursue the unsolicited proposal from Elliott …
The company has revenue turnover of $285m a quarter, what's the profit per quarter? Taking an (air plucked) 30% profit rate that works out at $342m profit a year.
What am I missing? $3.1b seems rather a high bid for this.
or bottom feeder?
I know. I'm gone.
Analyst Jason Ader of William Blair pointed out that "management appeared to leave the door open for a higher take-out offer, noting it will 'carefully review any credible offer'."
What board would not carefully review any credible offer? The purpose of the board is to maximise shareholder value; if they ignored a credible offer they would not be doing their job.
@Nick Ryan: That shows that if the business was to keep a static market share in a statically sized market then the value is good. The company are saying two things: 1. we can increase our share of the market, 2. the size of the market will grow. Depending on which side you believe determines whether you think the offer is reasonable or not.
How long will the mock-mexican headlines go on?
I only ask because, along with SPAAACE, I rather enjoy them.
I'm still hoping to see Sheet Music fitted in somewhere...
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