Riverbed Technology, Inc. (NASDAQ:RVBD) spurned Elliott Management’s offer to buy all of its outstanding shares for $21 apiece in cash, and Elliott already has a response for the company. The firm says Riverbed’s board of directors has failed the company’s shareholders—again.

Riverbed Technology

Elliott raised bid for Riverbed

This week, Elliott Management increased its bid for Riverbed Technology, Inc. (NASDAQ:RVBD) from $19 a share, which Riverbed also rejected. After that first rejection, Elliott continued to discuss buyout options and speak with shareholders, but apparently, it didn’t do much good. Here’s the statement released by Elliott:

“Riverbed’s Board has again failed shareholders. By rejecting our offer of $21 per share without so much as a discussion, and by refusing to grant Elliott and other interested buyers access to diligence, Riverbed’s Board has clearly chosen entrenchment over shareholder value. Shareholders should be outraged that the Board is not acting in a manner consistent with its fiduciary obligations. The clear and correct path forward for the Company is to engage in a dialogue with Elliott and other interested buyers so that we can conduct expedited diligence toward exploring a value-maximizing transaction.”

The company had said it would thoroughly review Elliott’s proposal but didn’t make any promises that it would approve it. Riverbed Technology, Inc. (NASDAQ:RVBD) also said it would continue executing its strategy to speed up growth and grab a larger share of the Application Performance Infrastructure market. In addition, the company reminded shareholders that it remains committed to returning capital to them, as it bought back shares using more than 100% of its free cash flow last year.

Elliott is Riverbed’s biggest shareholder

Currently Elliott and its affiliates hold about a 10.5% stake in Riverbed Technology, Inc. (NASDAQ:RVBD). Elliott itself is the company’s biggest shareholder. The firm has been trying to maximize Riverbend’s value and also its strategic positioning in the markets. Shares of Riverbend have lost significant value and underperformed compared to every relevant benchmark within all periods ever since the company’s initial public offering.