Monday, March 31, 2008

Packeteer Board Rejects Elliott Offer

Packeteer's Board of Directors formally rejected the acquisition offer of Elliot Associates for $5.50 per share in cash, saying that if the Board decides to sell the company, it is "well-positioned to negotiate a transaction with a value greater than the Elliott tender offer."

The company also announced that its Board had adopted a stockholders rights plan with a one year duration. Under the Rights Plan, stockholders of record at the close of business on April 14, 2008 will receive one share purchase Right for each share of Packeteer, Inc. Common Stock held on that date. If any person or group acquires 15% or more of Packeteer, Inc.'s Common Stock without prior Board approval, there would be a triggering event causing significant dilution in the voting power of such person or group.

  • On March 5, Elliott Associates. an international fund manager and long-term shareholder of Packeteer, make an unsolicited bid of $5.50 per share to acquire the company -- representing about a 42% premium over Packeteer's closing price the previous day.