Another Adventure Begins!
Snakes. Why'd it have to be snakes... and activist investors? It seems Elliott Investment Management those corporate raiders have sunk their teeth into Hewlett Packard Enterprise with a hefty $1.5 billion stake. A source more reliable than Short Round after a sugar rush told CNBC that Elliott's aiming to 'improve shareholder value.' Right. As if I haven't heard that one before. Usually means someone's about to get buried in the sand.
HPE's Temple of Doom?
HPE bless their digital circuits haven't exactly been having a picnic. Their stock's taken a beating this year losing over a quarter of its value. They even managed to beat revenue expectations last quarter only to follow it up with a fiscal full year forecast so weak it could make Willie Scott faint. Apparently they're wrestling with discounts and price adjustments – sounds like they're fighting the good fight but losing the battle against the market's Hovitos if you catch my drift.
Elliott's Reputation: A History of...Persuasion
Now Elliott they're not exactly known for politely asking for the Ark of the Covenant. They've been rattling cages at Salesforce Southwest Airlines and even Starbucks. Seems they have a knack for 'persuading' companies to see things their way. Reminds me of Belloq always one step ahead but ultimately he ended up on the wrong side of supernatural forces. Let's hope HPE doesn't suffer a similar fate.
A Stroll in Aspen
Just recently Elliott took a similar sized stake in Aspen Technology and they are opposing a deal that would allow Emerson Electric to buy remaining shares of the company in a $7.2 billion deal. In March the firm named nominees to join the board of oil company Phillips 66 where it has amassed a $2.5 billion stake. It's a bold strategy Cotton let's see if it pays off for them.
The Juniper Jungle
And as if that wasn't enough HPE is trying to snatch up Juniper Networks for $14 billion but the U.S. Department of Justice is throwing a wrench in the works trying to block the deal. It's like trying to cross a rope bridge with a horde of Thuggee cultists on your tail. This could get messy folks. Very messy.
So What's Next?
So what's the takeaway? Well buckle up because this Hewlett Packard Enterprise saga is just getting started. Will Elliott's 'suggestions' lead to fortune and glory for HPE or will it all end in a pile of sand and broken promises? Only time will tell. But one thing's for sure: I wouldn't want to be sitting in that boardroom right now. They're digging in the wrong place!
Hewlett Packard Enterprise HPE Elliott Investment Management shareholder value activist investor Juniper Networks stock market investment data center corporate strategy
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rogwn
I hope HPE has a good defense against those corporate raiders!
panda
I wonder if Elliott has a bullwhip and a fedora?
Cindyteenadvice
Elliott sounds like a real treasure hunter of the corporate world.
shawniepea
This is more exciting than my archaeology class!
ladystrange
I always knew those tech companies were hiding something!
SRL51550
I'd rather deal with snakes than shareholder activism!
haganmd
I'm just here for the ride and the witty commentary!
glajdel
HPE should consult with Indiana Jones for advice on navigating dangerous situations.