Hedge fund that prompted BMC Software sale buys stake in NetApp

Elliott Management, an activist investment firm that prompted BMC Software's recent sale to private equity, has acquired a stake in enterprise storage vendor NetApp, according to a report by Bloomberg. 

The news agency claims the hedge fund is pushing the company to replace its board of directors. 

After a few years of remarkable growth, NetApp's business has stagnated of late. In its most recent financial quarter, sales grew by 4% to $1.6 billion, with product sales falling slightly. 

Earlier this week, an investment analyst from Piper Jaffray reportedly claimed that NetApp is preparing to cut 1,300 jobs, around 10% of its workforce. 

There has been no suggestion yet that NetApp will seek to be acquired, but pundits agree that it is a possibility. The most likely candidates to acquire the company would be Oracle and Cisco. 

Ealier this month, BMC Software accepted a $6.9 billion offer to be acquired by a consortium of private equity firms. Last year, Elliott Management had acquired a 5% stake in the company, and wrote a letter to the board of directors calling for a sale.

Pete Swabey

Pete Swabey

Pete was Editor of Information Age and head of technology research for Vitesse Media plc from 2005 to 2013, before moving on to be Senior Editor and then Editorial Director at The Economist Intelligence...

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