Anyone know why? Merger or acquisition upcoming?
10 replies (most recent on top)
Pump and dump for sure.
Yeah, a bit of misunderstanding regarding how the share market works here. Elliot and Vista don’t control the stock market.
Vista sold Wrike to Citrix at a price where they saw value.
Elliot sold out around $150 where they saw value in exiting.
They now obviously both see value in purchasing Citrix at the current depressed pricing - quite correctly. On sum of parts, Citrix still has significant value and a large install base.
Sure, they could have foreseen an outcome like this, however they don’t control market, the economy, interest rates etc market pricing so insinuating they tried to engineer an outcome like this is a stretch.
There are much easier ways to make money on the market…
Ha Ha, looks like a great game of chess played by Elliott. Disclaimer this is just a hunch.
Make a deal with Vista
Push Citrix to buy Wrike at a premium >2B
Citrix loses 50% value after this
CEO loses the job
Buy Citrix at a low valuation in partnership with Vista ~10B
Take it Private
Cut all corners
Break into smaller pieces, sell some of them
Milk that remains heavily
Make 2x of the investment in 3 years
So, it looks like Citrix acquired Wrike from Vista for a gazillion dollars not too long ago and now Elliot and Vista are partnering to buy Citrix (maybe). Or, this rumor might be just to get people interested in the stock. Who knows?
What about this logic...
IF Wrike was owned by Vista prior to Citrix purchase
AND Citrix Purchase of Wrike led to Elliot Management Takeover
AND Elliot Management Takeover leads to (still to be determined) purchase of Citrix by Elliot and Vista
THEN Vista and Elliot actually purchased Citrix when Citrix bought Wrike
Is this possible or is this just business as usual?
Time to dump all RSUs? Probably we won’t get another opportunity.
Possible LBO as expected since no other future looking enterprise software company would have any interest in acquiring the company.
Stock price driven below $80 so a potential $90 to $100 bid looks good - forgetting that the company is down from $150+ over a year ago.
Lots of pump and dump for hedge funds buying call options and hedging with puts. Great for execs laughing all the way to the bank with RSUs that would immediately vest.
Wonder what will happen to unvested RSUs if they take the company private?
I expect more cost cutting in Q4 regardless of whether the bid succeeds or not.
So nothing actually happened. Elliott Management and Vista just leaked a rumor that they might partner (but might not, but definitely could, it's totally possible, it's just too early to tell.) In other other words, pumping their call options and underlying shares. Got it.
https://www.reuters.com/markets/deals/elliott-partners-with-vista-citrix-bid-sources-2021-12-21/