As the networking equipment maker Juniper Networks prepares to announce its turnaround plan, one of the activist investors in its shares is pressing its own case for what the company must do.
Elliott Management plans to say on Monday that it has received overwhelming support from fellow shareholders for its three-point plan on what Juniper should do, as well as to reiterate that it has had constructive conversations with the company’s new chief executive, Shaygan Kheradpir.
But reading between the lines of the hedge fund’s forthcoming statement shows that Elliott has a slate of director nominees that it plans to put forward if the company does not do enough to appease investors.
From the statement:
We also recruited a team of leading executives who are excited about Juniper and who have the operational skills and deep industry experience to help ensure that the shareholder value plan becomes a reality. Elliott is entirely committed to seeing the plan through, and our commitment is such that we remain open to all paths to ensure its implementation.
Elliott has made no secret that it has been preparing a slate of directors. It first went public with its demands last month, and the portfolio manager overseeing the activist campaign, Jesse Cohn, has been canvassing Silicon Valley for potential nominees.
The statement from Elliott comes just after Mr. Kheradpir has met with Juniper investors in New York City and Boston, assuring them that he will announce his operating plan within the next few weeks.
The hedge fund has already proposed cutting costs, returning capital to shareholders and trimming the company’s product line.
Elliott faces a deadline of Feb. 23 to nominate directors for Juniper’s board. But the firm is hoping that Juniper is already feeling enough pressure from shareholders and analysts that it will acquiesce to Elliott’s proposals.
The other major activist investor in Juniper, Jana Partners, is also believed to be preparing a slate of alternative board nominees.
