https://www.msn.com/en-us/money/companies/elliott-takes-stakes-in-dropbox-oracle-exits-citrix-qep/ar-BB14dJSA
Hang on ... when Elliott starts jockeying to get a seat on the board the stuff is gonna start hitting the fan.
https://diginomica.com/elliott-management-track-record-tech-deals
Usually when they come in and start to make big maneuvers the stock goes up on anticipation of them reaping a reward by making big changes. Look what they did to SAP and Citrix.
LE owes over 30% of the company ; I don’t see anybody telling him what to do with the company
Plus O is lot bigger that any of their other targets. They would have to invest a lot to possibly override LE. That would be very risky. If O's stock were to tumble they could stand to lose billions.
Bet they end up agitating SC into selling O to Micro Focus where old unloved software goes to convalesce.
Not likely. Micro Focus has a market cap of $2B, vs. 160B for O.
Elliot might be aiming for some Greenmail, to be paid to go away.
Tekelec And AcmePacket into the black hole of platinum support and no greenfield.
No new sales equals no pipeline. Support is pure profit margin, but unsustainable.
LE owes over 30% of the company ; I don’t see anybody telling him what to do with the company
Sure but ...
https://diginomica.com/elliott-management-and-sap-background-and-elliott-playbook
In the past five years, Elliott has launched activist campaigns at more than 50 companies—19 this year alone—in at least a dozen countries. During that span, the battle with Samsung is the only one that went all the way to a vote, and the only one in which the firm didn’t get what it wanted—a sign of just how effective Elliott is at pressuring management to agree to its demands. At the same time, Elliott’s assets have nearly doubled to roughly $39 billion, including $5 billion it raised in a 23-hour span in May, making it more than twice the size of the second-biggest activist hedge fund, Dan Loeb’s Third Point.
Cohn’s campaigns have resulted in the takeouts or buyouts of more than a dozen companies, including BMC Software, Informatica, LifeLock and, biggest of all, EMC, which Dell acquired for $67 billion in 2015. “I don’t know if anyone has any more experience than he does prosecuting activist campaigns,” says Chris Young, head of contested situations at Credit Suisse, who has known Cohn since the latter started at Elliott.
Seems Elliott gets what it wants – just look at the AT&T board here on how they are predicting DirectTV may soon be up for sale and how RS got replaced by JS. Should be a fun show – grab me some pop corn and a soft drink.
So far the position is small (like $20M) not enough to do anything...... yet.
Bet they end up agitating SC into selling O to Micro Focus where old unloved software goes to convalesce.
Ah yes, Tekelec. And Acme Packet too. Selling much telecom stuff at all?
Sounds like Safra is in for a ride...
https://diginomica.com/elliott-management-and-sap-background-and-elliott-playbook
For the leadership of the targeted company, the appearance of an activist shareholder becomes a material consumer of executive time. Pressure is placed on both the board and executive team to develop new financial models, evaluate capital structure options, create numerous and very different budgets and plans. A way to think of this is as operational and financial open heart surgery.
into the black hole. Another "failed" merger, just used to cook the books that year.
I bet they are gonna agitate to unlock the value we got with that Tekelec investment.
https://www.oracle.com/corporate/acquisitions/tekelec/
Where did all that stuff go... Has anyone actually sold a new Eagle STP recently or did it disappear in a sink hole?