Elliott's Bid for Riverbed (RVBD) First Move in High Stakes Poker Game, FBR Capital Says

January 8, 2014 11:57 AM EST
Get Alerts RVBD Hot Sheet
Price: $20.99 --0%

Rating Summary:
    8 Buy, 33 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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FBR Capital analyst Daniel Ives commented on Riverbed Technology (NASDAQ: RVBD) after Elliott Management offered to acquire the company for $19 per share, or a 6% premium to last night's close and a 26% premium to where Elliott became involved.

"With Riverbed shares currently trading above the $19 offer price, we believe it represents the first step in this "game of high stakes poker", and that ultimately Elliott's activism will lead to higher shareholder value for investors but it will take time, as Elliott reviews the company's private due diligence materials," Ives said.

"To this point, we believe other strategic and financial buyers could enter the Riverbed bidding process over the coming months as this remains a core strategic asset within the broader technology food chain," he added. "

If not Elliott, the analyst sees financial/private equity buyer as the most likely bidder.

Despite the news, FBR is maintaining a Market Perform rating and price target of $19 on RVBD.

For an analyst ratings summary and ratings history on Riverbed Technology click here. For more ratings news on Riverbed Technology click here.

Shares of Riverbed Technology closed at $17.85 yesterday.

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