Riverbed Technology Spikes On Reported Start Of 'Sales Process'

Riverbed Technology, Inc. (NASDAQ: RVBD) spiked Wednesday after a website said the company is seeking suitors.

The company is expected to start a sale process and contact potential buyers next week, according to an item said to be published by dealReporter.

Riverbed said on October 9 that it will review strategic and financial alternatives, with no timetable for the process.

On the same day, Eric Mindich's Eaton Park Capital fund said it had made a $21 per share bid for Riverbed, and "looks forward to completing our confirmatory diligence in an expedited fashion.”

Eton recently boosted its stake in Riverbed Technology to a 5.6 percent stake, or 9 million shares from 2.95 million shares.

Riverbed rejected an earlier $21 per share offer from the hedge fund Elliott Management in February, calling it inadequate.

Since rejecting the earlier offer, Riverbed shares are down more than 5 percent.

In afternoon trading Wednesday, Riverbed gained 2.7 percent to $18.40.