Another Hedge Fund Takes Big Stake in JNPR# Stock
m*e
1 楼
Wall Street Journal
By
David Benoit
Jan. 23, 2014 9:09 p.m. ET
Jana Partners LLC owns a big stake in Juniper Networks Inc., JNPR -0.65%
making it the second major shareholder activist to invest in the
networking-gear company recently.
Jana built its stake in Juniper in the fourth quarter, it said in a letter
to its investors Thursday that was reviewed by The Wall Street Journal. The
letter doesn't disclose the size of the position, but says the hedge fund
has become one of the largest holders of the company's shares.
Jana believes Juniper, which has a market value of $13.1 billion, should cut
some $300 million in costs a year and launch a large program to return
capital to shareholders. The letter didn't quantify the hedge fund's capital
-return hopes.
The activist investor, which says it has been talking with Juniper
management, was also critical of executive compensation at the company and
spending on its headquarters in Sunnyvale, Calif. Jana says it believes the
company's board "would benefit from the addition of new directors with a
fresh perspective."
Those arguments echo comments made last week by Elliott Management Corp.,
which disclosed a 6.2% stake in Juniper. Elliott also urged the company to
make large costs cuts, though slightly smaller at $200 million. It also is
seeking a $3.5 billion share-repurchase program and a strategic review of
some business lines at Juniper. Elliott said the plan could boost Juniper
shares, which closed Thursday at $26.01, to as much as $40 each.
On a quarterly earnings conference call Thursday, Juniper Chief Executive
Shaygan Kheradpir, who started the job Jan. 1, appeared to address the
activists' concerns, pledging to undertake a review of costs at the company,
and explore possible share repurchases and dividends. Calling himself an "
agent of change," he said he would share more details of the company's plans
in the next few weeks, and would be specific with achievable goals.
A Juniper spokesman declined to comment further.
.
.
.
By
David Benoit
Jan. 23, 2014 9:09 p.m. ET
Jana Partners LLC owns a big stake in Juniper Networks Inc., JNPR -0.65%
making it the second major shareholder activist to invest in the
networking-gear company recently.
Jana built its stake in Juniper in the fourth quarter, it said in a letter
to its investors Thursday that was reviewed by The Wall Street Journal. The
letter doesn't disclose the size of the position, but says the hedge fund
has become one of the largest holders of the company's shares.
Jana believes Juniper, which has a market value of $13.1 billion, should cut
some $300 million in costs a year and launch a large program to return
capital to shareholders. The letter didn't quantify the hedge fund's capital
-return hopes.
The activist investor, which says it has been talking with Juniper
management, was also critical of executive compensation at the company and
spending on its headquarters in Sunnyvale, Calif. Jana says it believes the
company's board "would benefit from the addition of new directors with a
fresh perspective."
Those arguments echo comments made last week by Elliott Management Corp.,
which disclosed a 6.2% stake in Juniper. Elliott also urged the company to
make large costs cuts, though slightly smaller at $200 million. It also is
seeking a $3.5 billion share-repurchase program and a strategic review of
some business lines at Juniper. Elliott said the plan could boost Juniper
shares, which closed Thursday at $26.01, to as much as $40 each.
On a quarterly earnings conference call Thursday, Juniper Chief Executive
Shaygan Kheradpir, who started the job Jan. 1, appeared to address the
activists' concerns, pledging to undertake a review of costs at the company,
and explore possible share repurchases and dividends. Calling himself an "
agent of change," he said he would share more details of the company's plans
in the next few weeks, and would be specific with achievable goals.
A Juniper spokesman declined to comment further.
.
.
.