NEW YORK: Elliott Investment Management has built a position in Hewlett Packard Enterprise Co worth more than US$1.5bil, according to sources.
Elliott plans to engage with the software and networking company to help it boost value, said the sources.
The investment makes Elliott one of the company’s top five shareholders, according to data compiled by Bloomberg.
Elliott’s exact intentions at HP Enterprise couldn’t be immediately learned, according to the sources.
HP Enterprise shares, which jumped as much as 8.8% on Tuesday, closed up 5.1% to US$15.01 in New York trading, giving the company a market value of about US$20bil.
The stock is still down 39% from its all-time high in January.
Elliott’s move is one of the first major activist campaigns unveiled after the market turmoil related to President Donald Trump’s tariff plans.
Representatives for Elliott and HP Enterprise declined to comment.
While artificial intelligence has fuelled heavy demand for hardware such as servers and networking, HP Enterprise hasn’t been able to seize the moment as much as its peers, including Dell Technologies Inc. — Bloomberg
