Stocks Hewlett Packard Enterprise It jumped nearly 5% after Elliott Investment Management built more than $1.5 billion in stakes in server makers.
Activist investors hope to engage the company in discussions about ways to improve shareholder value, sources said.
Elliott and HPE declined to comment on the news.
The data center equipment manufacturer’s stock lost more than fourth value this year. Last month, the company smashed its quarterly revenue expectations, but issued a small annual guidance for the year. HPE said higher discounts and expected price adjustments are working to weigh the top line growth.
Elliott has a long history of driving change in some of the world’s largest companies. Salesforce, Southwest Airlines and Starbucks.
Most recently, the investment management company acquired a $1.5 billion stake in an industrial software maker. Aspen Technologyand said Emerson Electric opposed a deal that would allow the company to purchase the remaining shares of the company in a $7.2 billion deal. In March, the company was nominated as a candidate and joined the oil company Phillips 66 Committee, accumulating $2.5 billion in stake.
HPE is currently looking to buy Juniper Network for $14 billion, but the US Department of Justice sued earlier this year to block the transaction.
Bloomberg first reported the news.
Fixed: This story was updated to reflect Elliott’s $1.5 billion stake in HPE. An earlier version of the story misstates the amount.
