Hedge fund wants to acquire Packeteer

By Lisa Kerner

Charlotte, N.C., March 5 - Packeteer, Inc. shareholder Elliott Associates, LP offered to buy the company for $5.50 per share in cash.

The per-share price is a 42% premium to Packeteer's closing price on March 4 and a 19% premium to the trailing 30-day closing price.

Elliott Associates, in a letter to Packeteer's board of directors, said its "compelling" offer follows several attempts by the hedge fund to discuss the company's performance with the board.

"We believe Packeteer's poor performance - as reflected in the 37% decline of its stock price year-to-date and 67% decline over the past twelve months - is the result of weak execution in terms of selling and developing its industry-leading products," the letter stated.

Elliott Associates, with a 9.8% stake in the company, said it is prepared to take the offer directly to fellow Packeteer shareholders.

Packeteer is a networking technology company based in Cupertino, Calif.

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