Rackspace Jumps After-Hours On Activist Investor Stake
Rackspace Hosting (NYSE: RAX) trended up in the extended session after activist investor Blue Harbour Group LP disclosed that it boosted its stake to 6.5 percent from 2.5 percent in June.
The news was reported by the Wall Street Journal a few minutes ahead of the company's form 13G filing.
Blue Harbour said it has held discussions with Rackspace regarding strategic alternatives and "may take other steps" to boost shareholder value.
Blue Harbour said it acquired the shares at prices ranging from about $29.30 to $35.86 between late June and Aug. 12.
Rackspace announced in May that it hired Morgan Stanley to explore strategic options, including a sale or partnership. But no deal has so far materialized, and Rackspace's shares are down nearly 12 percent since then.
Rackspace traded recently after hours at $32.65 up 2.6 percent.
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