Paul Singer Wasting No Time Turning Fresh $5B Into Someone Else’s Pain

Would Gigamon's management like to explain their company's recent troubles, or just quit before Paul Singer fires them?

Last week—on Wednesday and Thursday, specifically—Elliott Management took in an extra $5 billion to capitalize on the opportunities sure to present themselves amidst the coming Trumpian economic collapse. But Paul Singer’s not waiting for the guaranteed depression he foresaw prior to the election, and his making peace with its outcome. Nope, he’s having too much fun. And the people who run Gigamon Inc. are about to find out how, exactly, Paul Singer has fun with a company that just swung to a $2.23 million quarterly loss and whose stock has dropped 23% this year.


Activist investor Elliott Management reported a 15.3 percent stake in Gigamon Inc, making it the software maker's top shareholder, and called the shares "significantly undervalued…."

The Paul Singer-led hedge fund said it may develop plans and proposals suggesting potential changes in the company's operations and management, among other possible moves.

Should the folks at Gigamon choose to ignore those suggestions, well, Singer has other ways of getting his way by making their lives miserable. Why, he’s in the process of making an example of Akzo Nobel, which is stubbornly refusing to just do what he wants and sell itself to PPG Industries.

After taking two weeks to evaluate the bid, Akzo Nobel repeated that the proposal is flawed and riddled with risk, defying pressure from shareholders such as Elliott Management Corp. to negotiate….

Elliott has called for the dismissal of Chairman Burgmans. The Dutch company previously rejected the hedge fund’s request to put the motion to a vote at an extraordinary shareholders’ meeting, saying it would be “irresponsible, disproportionate, damaging and not in the best interests of the company.” Elliott declined to comment on Monday.

Activist investor Elliott takes 15.3 percent stake in software maker Gigamon [Reuters]
Azko’ Third Snub of PPG Raises Prospect of Hostile Approach [Bloomberg Quint]
Paul Singer’s Flagship Fund Raises $5 Billion in 24 Hours [Bloomberg]