Feeds

Look behind you, NetApp: Angry investor is coming for YOU

First Xyratex, then Emulex and Brocade... now Elliot's stalking a storage giant

Internet Security Threat Report 2014

Activist investor Eliott Management, of Emulex fame, always pushes to have its voice heard - especially when it thinks bosses of its "investment companies" don't put shareholders first. Now the fund has actually taken on storage giant NetApp.

According to a Bloomberg report, Elliott is pushing NetApp to change its board. We can only imagine exec chairman Dan Warmenhoven's volcanic reaction.

Apparently Elliott and NetApp have been talking for some weeks, with Elliott suggesting a new set of directors. The investor actually holds less than five per cent of NetApp's shares but may increase its holding.

Stifel Nicolaus analyst Aaron Rakers writes: "Elliott was listed as holding only ~1.151 million shares (0.3 per cent of stock/outstanding) as of 3/31/13 filings."

Why is NetApp vulnerable to this sort of exercise? Two words: shareholder value. The shares peaked at $60.60 on 11 February, 2011 and have been worth less than $40 for the past 12 months.

NetApp doesn't pay a dividend but has been re-purchasing its shares, as Rakers writes: "While we are somewhat suspect of NetApp’s willingness to initiate a dividend strategy, we do believe a more active return of cash to shareholders is warranted. NetApp exited its January 2013 quarter with a outstanding share repurchase authorisation of $1.033 billion."

NetApp shares jumped 6.5 per cent on the news of Elliott's involvement, to $38.51. The company's fourth quarter and full year results are being reported on 21 May next week. Expect fireworks in the earnings call. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Do you spend ages wasting time because of a bulging rack?
No more cloud-latency tea breaks for you, users! Get a load of THIS
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.