Hot off of its victory with Hess, Elliott Associates turns its focus to NetApp.
Elliott Management has reportedly acquired a significant stake in NetApp Inc. (NTAP) and will press the company to change its board and boost shareholder value. NetApp describes itself as “a leading provider of innovative storage systems and data management solutions that form the foundation for efficient and flexible IT infrastructures.” However, its reputation is one of lagging in the hottest area of data management: cloud storage.
Reacting to the news, NTAP shares jumped from a closing price of $36.22 on May 15 to $38.46 on May 16 with intraday highs exceeding $39.
Barclays also approves of Elliott’s involvement, noting NetApp’s cash position, share repurchase authorization and potential for restructuring, even as it is skeptical of NetApp’s ability for successful M&A.
NTAP is at $37.19 as of his writing.