Activist Hedge Fund Takes Massive Stake in Microsoft (MSFT); Does He Want Ballmer's Head on a Stick?

April 22, 2013 9:19 AM EDT
Microsoft Corporation (NASDAQ: MSFT) is reacting positively pre-market Monday to news from CNBC's David Faber that deep-value and activist hedge fund ValueAct Capital has built and will shortly disclose a $2 billion stake in the software giant.

ValueAct's secretive founder Jeffrey Ubben would not go on for a interview with Faber, but did confirm the existence of the position. He also would not discuss his intention with the investment. However speculation has already pointed to the head of CEO Steve Balmer. It is ValueAct's largest bet to date, Faber also noted. In addition, a split-up of the company is being discussed.

Shares of Microsoft are up 1.7 percent to $30.26 on the news.

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