Server maker Hewlett Packard Enterprise has created a committee aimed at identifying “opportunities for additional value creation,” the server maker said Wednesday.
The company, also known as HPE (HPE), in a morning press release said the committee, which will be led by a new board member—KLA Corp. (KLAC) Chair Bob Calderoni—will “assess the strategies of HPE’s businesses,” a process driven in part by activist investor Elliott Management, which has a large stake in the company.
HPE’s pact with Elliott includes “an information-sharing agreement that will allow for an ongoing dialogue between Elliott and HPE,” the company said, and includes a provision that would allow Elliott to appoint a member to HPE’s board. Elliott said it was “pleased” with HPE’s latest moves.
Shares of HPE, which are in the red both this year and over the past 12 months, were recently up less than 1% to around $20.50. Wall Street generally expects some appreciation for the stock, with the mean price target of analysts polled by Visible Alpha currently above $22.
HPE in early June reported quarterly results that came in stronger than expected and narrowed its full-year outlook. It closed on the acquisition of Juniper Networks earlier this month.
