Market Overview

Sources Say Riverbed is Not Considering a Sale

Sources Say Riverbed is Not Considering a Sale

Riverbed Technology (NASDAQ: RVBD) was rumored to have hired Goldman Sachs (NYSE: GS) to consider a possible sale, following a stock surge of more than $1.50 ahead of Wednesday's closing bell.

Reuters reported last night that Riverbed is not currently weighing a sale after interviewing two sources. Reuter's Nicola Leske noted, "the two sources told Reuters that while Goldman Sachs had been a long time advisor to Riverbed, the bank is currently not working with the company on a potential sale. Representatives of Riverbed and Goldman Sachs declined to comment. The sources asked not to be named because the matter is not public."

On November 11, Riverbed Technology's board of director's approved a "poison pill" stockholder plan, which will kick in when an investor has a 10 percent stake in the company or an institution owns 20 percent of shares. This plan was shortly adopted following activist investor Elliot Management's obtained a 10.4 percent stake and suggested that the shares are undervalues and recommended a strategic review.

Riverbed Technology closed at $19.04 on Wednesday and is currently trading -5.25 percent.

Posted-In: Goldman Sachs Nicola Leske ReutersNews Rumors Best of Benzinga


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