Elliott Management stalled at its acquisition of Gigamon

Having acquired a stake of 15.4%, Elliott Management’s bid for Gigamon has currently stalled due to its offer price being below Gigamon’s currently traded share price of $43.55.

As per sources familiar with the matter at hand, Elliott Management’s attempt to acquire Gigamon Inc, a U.S. networking software solutions maker, has faced a setback.

Elliott participates in buyouts through its private equity arm, Evergreen Coast Capital Partners and seeks to become a credible buyer of public companies. It has earlier participated in the acquisition of private companies, including Dell’s software group.

As per sources, Gigamon rejected Elliott’s latest since it was below the company’s share price.

On Thursday, Gigamon shares ended trading at $43.55 which gave the company a market capitalization of $1.6 billion.

As per sources, this is not the end of the road for this deal for Elliott, since negotiations could resume in the near future with either Gigamon or Elliott receiving offers from others parties.

Sources preferred the cover of anonymity since the matter is confidential. Both. Elliott and Gigamon, declined to comment.

Incidentally, Elliott is one of Gigamon’s largest shareholders, and had disclosed a 15.3% stake in May. Since then, Gigamon’s shares have risen by nearly 24%.

A leveraged buyout of Gigamon would mark its first takeover of a public limited company.


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