(Adds Elliott proposals, Akamai response; Updates share price)
Dec 15 (Reuters) - Activist investor Elliott Management Corp on Friday disclosed a 6.5 percent stake in Akamai Technologies Inc, and said it plans to hold talks regarding strategic alternatives for the company including a sale.
Shares of Akamai, which speeds up content delivery over the internet (OTT), were up 13.8 percent at $65.75 in after-market trading.
The New York-based hedge fund said Akamai shares were "significantly undervalued" and it intends to make proposals to Akamai on sale of certain businesses or assets, according to the filing. (http://bit.ly/2AAjqTk)
Elliott also said it intends to communicate with other shareholders including potential acquirers, service providers and financing sources for Akamai.
"We appreciate the views of all our stockholders and we value constructive input toward the common goal of enhancing stockholder value," an Akamai spokesman told Reuters.
The company's shares trade at 21.9 times forward earnings, significantly below the broader Software & IT Services industry index that trades at 31.9 times.
Akamai shares had fallen 15 percent year-to-date compared with a 33.2 percent decline in the S&P 500 Internet Software & Services index. (Reporting by Sonam Rai in Bengaluru; Editing by Shounak Dasgupta)