Chapman Capital Discloses 9.9% Stake in Packeteer (PKTR), Demands Sale

In a 13D filing on Packeteer, Inc. (Nasdaq: PKTR), Robert Chapman's Chapman Capital disclosed a 9.9% stake in the company and demanded the company hire an investment bank to maximize shareholder value. Chapman noted that attempt to communicate with top executives was unsuccessful.

From the filing, "On July 30, 2007, Mr. Robert L. Chapman, Jr. attempted to contact the Issuer's Chief Executive Officer, Mr. David G. Cote, to inform him of the Reporting Persons a) having become the owners collectively of 9.9% of the Issuer's Common Stock, and b) demand that the Issuer hire an investment bank to maximize shareholder value. Mr. Cote refused to return Mr. Chapman's telephone call. Subsequently, Mr. Chapman contacted the Issuer's Chief Financial Officer, Mr. David C. Yntema, who refused both a) to record a written message for Mr. Cote regarding Chapman Capital's demand that the Issuer hire an investment bank to maximize shareholder value, and b) to give Mr. Cote a message to that effect. In addition, Mr. Yntema stated that Mr. Cote would not be returning Mr. Chapman's telephone call at any time in the future. Mr. Chapman also contacted the Issuer's Chairman, Mr. Steven J. Campbell, who refused to provide his E-mail address to allow Chapman Capital to provide, unilaterally and thus completely outside the venue of Regulation FD, information to the Issuer's Board of Directors such as that within the forthcoming Original 13D Filing. Following Mr. Chapman's conveyance of Chapman Capital's demand regarding the maximization of shareholder value, the conversation between Mr. Chapman and Mr. Campbell terminated abruptly."

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.