Feb 28 Network gear maker Riverbed Technology
Inc rejected Elliott Management's raised bid of $3.36
billion, saying the hedge fund's offer undervalued the company.
Elliott on Tuesday increased its offer by $2 to $21 per
share and said it could raise the bid if allowed access to
Riverbed's books for due diligence.
Riverbed said on Friday its board unanimously determined not
to pursue Elliott's offer, which was not in the best interests
"Riverbed board has again failed shareholders... (the) board
has clearly chosen entrenchment over shareholder value,"
Elliott, which holds a 10.5 percent stake in Riverbed, said in
Paul Singer-led Elliott made its first offer in January.
Riverbed has been struggling with the integration of Opnet,
a maker of software to manage traffic on networks, which it
acquired in 2012 to counter a slowdown in its main wide area
network optimization business.
Goldman, Sachs & Co is advising Riverbed.
Riverbed's shares were marginally down at $20.50 on the
Nasdaq. The stock has gained about 15 percent since Elliott's
first offer on Jan. 8.