(AP) Elliott Management Corp. is offering $19 per share for computer networking equipment maker Riverbed Technology.
The New York-based investment firm is one of Riverbed's largest investors with 10.5 percent of its shares. Its bid represents a 6 percent premium to Riverbed's closing price Tuesday. The firm says it believes Riverbed's shares are undervalued.
Its offer puts the value of the company at nearly $3.08 billion, based on its Riverbed's estimated 161.92 million shares outstanding.
Elliott's offer would allow the San Francisco company to solicit competing proposals, noting that numerous parties have expressed interest in buying Riverbed.
Riverbed's shares jumped nearly 10 percent to $19.56 following the announcement Wednesday.
Riverbed, which recently adopted a poison pill to thwart potential hostile takeovers, was unavailable for comment.