| NEW YORK
NEW YORK Feb 3 Hedge fund Elliott Management
Corp, which owns a 6.2 percent stake in Juniper Networks Inc
, has prepared a slate of directors in the event that
the network equipment maker's pending turnaround plan does not
achieve goals laid out by the activist investor, people close to
the matter said.
Elliott, which in January urged Juniper to return cash to
investors, consider cutting costs and conduct a strategic review
of its product portfolio, said in a statement on Monday that it
has recruited a team of leading executives who have the
"operational skills" and "deep industry experience" to make its
plan a reality.
So far, Elliott has held an open dialog with management and
said in its statement that it prefers to work collaboratively
Last week Juniper's new Chief Executive Officer Shaygan
Kheradpir met with investors in his first introductory meeting
since joining the company in early January, sources familiar
with the meetings said.
In a statement to Reuters on Monday, Juniper said: "We are
continuing a constructive dialogue with our shareholders and we
look forward to presenting our integrated operating plan in the
Goldman Sachs is advising Juniper on its strategy, sources
close to the matter said. A representative for Goldman was not
immediately available for comment.
Since Elliott launched its campaign on Jan. 13, another
activist investor has disclosed a holding in Juniper. Jana
Partners LLC said in a letter to its investors that it owns a
large stake in Juniper.
Jana said it has been talking to Juniper management to
explore ways to unlock "shareholder value" and has cited
management compensation as an area of reform. The hedge fund
suggested addition of new directors to the company's board.
The deadline for shareholders to nominate directors to
Juniper's board is Feb. 23.