Riverbed Technology rejected the latest takeover proposal from the hedge fund Elliott Management on Friday, calling the $3.3 billion offer too low.
The move was disclosed just three days after Elliott raised its takeover bid to $21 a share from $19. While Elliott said it would like to own Riverbed, which makes networking equipment, it has explicitly and repeatedly contended that other potential buyers are waiting in the wings.
But Riverbed said in a brief statement on Friday that the new bid was not in the best interests of shareholders, adding that it will review “any credible offer†that it receives.
In a response, the hedge fund called Riverbed’s board entrenched and unwilling to entertain any takeover bids.
“Riverbed’s board has again failed shareholders,†Elliott said in its statement. “By rejecting our offer of $21 per share without so much as a discussion, and by refusing to grant Elliott and other interested buyers access to diligence, Riverbed’s board has clearly chosen entrenchment over shareholder value.â€
While Elliott chose not to press other forms of attack, like running a slate of board candidates, it was offered the opportunity to “consult†on the selection of one director, according to a person briefed on the matter.
The board spot was almost certainly the one that belongs to Satya Nadella, the new Microsoft chief executive, who announced on Friday that he would give up his director seat.
Riverbed is being advised by Goldman Sachs and the law firm Wilson Sonsini Goodrich & Rosati.
