Thursday, May 24, 2007

Elliott Associates Wants Packeteer (PKTR) To Entertain a Sale of the Company

In a 13D filing on Packeteer, Inc. (Nasdaq: PKTR), Elliott Associates and related funds disclosed a 6.3% stake in the company and said on May 18th they communicated to the company's Board of Directors their belief that the Board should be directing its attention to a prompt sale of the company.

From the Purpose of Transaction section of the filing:

The Reporting Persons expressed to the Board their views that: i) the Issuer has leading technology in one of the fastest growing segments of the networking market, but has proven unable to capitalize on such technology; ii) the business segment in which the Issuer operates is becoming increasingly competitive; and iii) the Issuer’s technology may prove extremely valuable to a larger acquirer looking to enter the wide area network optimization market or to supplement its current product offering. The Reporting Persons believe that prompt action by the Board to commence a sales process is necessary.

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