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Symantec Surges As Activist Investor Is Building A Large Stake

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Shares of Symantec Corporation (NASDAQ: SYMC) were trading higher by nearly 10 percent ahead of Friday's opening bell after the company announced it has received a $500 million strategic investment by Silver Lake.

In connection with Silver Lake's investment, the company's Board of Directors has increased its total capital return program to $5.5 billion which is expected to be completed by the end of March 2017.

The capital return program will consist of a $500 million accelerated share repurchase program, a special dividend of $4.00 per share and $2.3 billion in future share repurchases.

Ken Hao, Silver Lake's managing partner has also been appointed to Symantec's Board of Directors.

Michael A. Brown, Symantec president and CEO, said, "Silver Lake's investment in Symantec validates the significant progress we've made in our transformation and is a tremendous vote of confidence in the Company. As we execute on Symantec's unified security strategy as a focused company, we look forward to driving significant value for all shareholders."

Meanwhile, The Wall Street Journal reported that activist investor Elliott Management has amassed a large stake in Symantec. In addition, the activist fund is said to be supporting Silver Lake's investment and other measures the company announced.

The company also reported earnings on Thursday afternoon, beating estimates.

 

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Posted-In: Elliott Management Ken Hao Michael Brown Silver Lake Symantec The Wall Street JournalNews Movers