Elliott Management, the hedge fund founded by billionaire Paul Singer, is making an activist play for Juniper Networks, Bloomberg reports.
Elliott already has a 6.2% stake in the company, and shares are up almost 7% in pre market trading.
The fund’s strategy for the company is pretty typical of what The Street’s been seeing these days. Elliott will cut costs, and push for a share buy back and dividend payouts.
Juniper is the second largest maker of computer networking equipment in the world, but its stock has underperformed the S&P 500 for the last three years, unable to take part in the general boost for stocks.
Last week, Elliott offered to by Riverbed Technology for $US3.08 billion, a company that analysts expected Juniper Networks might buy itself. Elliott’s $US19 offer price is likely to set off a bidding war for the company, and its stock jumped 14% on the news.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.