Elliott Management Takes 7.1% Activist Stake In Citrix, Says Stock Can Rise Above $90
ByCitrix Systems CTXS +2.13%, best known for its online GoToMeeting service may be preparing for a series of meetings of its own. Jesse Cohn, a technology-focused portfolio manager with powerful activist hedge fund Elliott Management, disclosed a 7.1% stake in Citrix and a plan to work with the company on improving its operations, while also selling or spinning corporate assets.
In a filing disclosing its activist stake, Elliott said Citrix could improve its cost structure after “years of layered complexity and expenses,” and targeted operating expenses in the range of 54.5%-to-55% of revenue by 2017, an up to 850 basis point improvement from current levels. The fund also said Citrix should consider selling or restructuring underperforming brands like CloudBridge, CloudPlatform and ByteMobile, while also spinning high value workplace services businesses sich as GoToMeeting and NetScaler…
Elliott Management Takes 7.1% Activist Stake In Citrix, Says Stock Can Rise Above $90
