| NEW YORK
NEW YORK Feb 20 Juniper Networks Inc
has agreed to several of hedge fund Elliott Management Corp's
demands for changes at the network equipment maker, including
appointing two directors proposed by Elliott, a person close to
the matter said on Thursday.
The source requested anonymity because the director nominee
discussions are private.
Juniper also laid out an operational plan that will refocus
the company on its fastest-growing networking segments, reduce
its cost base and return capital to shareholders, the company
said on Thursday. It plans a $2 billion share repurchase and a
cash dividend of $0.10 per share.
The steps were among recommendations that Elliott, which
owns a 6.2 percent stake in Juniper, made in January, marking a
surprisingly quick victory for the activist investor.
Elliott had prepared a slate of directors to move ahead with
a potential proxy contest if the company did not implement its
The new directors are former Cisco Systems Inc
executives Kevin DeNuccio and Gary Daichendt.
Both will be up for election during Juniper's annual
shareholder meeting this year.
Daichendt, who was nominated by the New York-based hedge
fund last year to network services provider Emulex Corp's
board, also serves on the boards of NCR Corp and
DeNuccio, is the current chief executive of flash storage
company Violin Memory Inc and was formerly president
and chief executive of telecom equipment maker Redback Networks
Former Juniper Chief Executive Officer Kevin Johnson will
retire from the board at the end of this month.
Elliott has agreed to vote in favor of Juniper's director
nominees at its 2014 shareholder meeting.