Elliott ‘doubling down’ on bid for Riverbed Technology

Jerry Kennelly, center, chairman and CEO of Riverbed Technology
AP

Elliott Management is getting more aggressive in its bid for Riverbed Technology.

The $23 billion activist hedge fund firm led by Paul Singer offered to buy the enterprise technology company for $19 in January but was rejected. Still owning 10.5 percent of Riverbed's stock, Elliott increased its offer to $21 a share Tuesday.

Elliott portfolio manager Jesse Cohn said in a public letter to the Riverbed board that the new offer "demonstrates our commitment to the value-maximizing potential of Riverbed's high-quality assets and its strategic positioning within its markets."

"It also represents our deep and abiding skepticism that a maturing technology company whose efforts to diversify have resulted in significant lost value and whose stock has underperformed virtually every relevant benchmark over any time period since its (initial public offering) can offer superior value to stockholders on a publicly traded, stand-alone basis," Cohn added.

Representatives for Riverbed, which is led by chairman and CEO Jerry Kennelly, did not immediately respond to a request for comment.