Packeteer rejects Elliott's offer, will review strategic alternatives

By Lisa Kerner

Charlotte, N.C., April 1 - Packeteer, Inc.'s board of directors rejected a $5.50-per-share unsolicited conditional cash tender offer from Elliott Associates, LP, calling it "contrary to the best interests of the company's stockholders."

The board recommends that stockholders not tender their shares in the offer, according to a company news release.

An Elliott subsidiary began the tender offer for Packeteer on March 20.

The offer, valued at $190 million, is set to expire at 11:59 p.m. ET on April 16 unless extended, an Elliott news release stated.

Elliott, a 9% shareholder, announced its offer to buy Packeteer on March 5.

Packeteer also confirmed that the board was exploring alternatives to maximize shareholder value that could include a business combination with third parties, including Elliott.

In addition, the board of Packeteer adopted a one-year stockholders rights plan that gives stockholders of record as of April 14 the right to receive one share purchase right for each share of Packeteer common stock.

Under the plan, if any person or group acquires 15% or more of Packeteer's common stock without prior board approval, there would be a triggering event causing significant dilution in the voting power of that person or group, the Packeteer release said.

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

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