Networking equipment company Juniper Networks said Thursday that it has reached an agreement with hedge fund firm Elliott Management to nominate two new directors to the its board.
The New York Times reported that Juniper is nominating former Cisco executive Gary Daichendt and former Redback Networks president and chief executive Kevin DeNuccio for election to its board. Juniper has also agreed to return more money to shareholders, avoiding a possible proxy battle with New York-based Elliott--which has a 6.2% stake in the company.
Elliott, which began pushing for a change in Juniper last month, has approved the nominations and other initiatives by the California-based company.
Under the proposed plan, Juniper will return at least $3 billion to shareholders over the next three years through share buybacks and dividends. It will also streamline its operations and portfolio and focus more on certain fast-growing markets, which will help reduce costs and improve operating margins.
Elliott also urged oil group Hess Corporation to break up last month in an attempt to boost the latter’s value. The hedge fund, founded in 1977, currently manages about $21 billion in assets.