Elliott Discloses 10.3% Stake In Commvault Systems, Nominates Four To Board

(RTTNews) - Activist investor Elliott Management Corporation said it plans to nominate four candidates to Commvault Systems Inc.'s (CVLT) Board. Shares of Commvault were up 11 percent in Monday regular trading after Elliott disclosed a 10.3% stake in the data management company.

In a letter to CommVault's board, Elliott said it believes the company's current market value doesn't reflect its leadership in the data management software market.

Responding to Elliott's letter, Commvault said it conducts open communications with its stockholders, and the Board of Directors and management team values their input. Commvault has had initial discussions with Elliott and it goes into these discussions with an open mind, a goal of enhancing stockholder value, and optimistic for Commvault's future.

Meanwhile, Elliott noted that Commvault's returns have been particularly disappointing over the last five years, where recurring execution issues and a dramatic decline in operating income have weighed heavily on the stock. Even companies operating in less attractive market segments with greater secular challenges have managed to operate more efficiently, execute well and ultimately deliver shareholder value.

Elliott's nominees to the Board of Commvault include Martha Bejar, Wendy Lane, John McCormack and Chuck Moran.

In addition, Elliott's letter outlined a path forward for Commvault to create significant shareholder value through fundamental improvements in the Company's execution, operations, capital allocation and governance. Elliott stated in the letter that it is looking forward to constructive engagement with the Company and optimistic about developing a mutually supported path forward.

Elliott said it has a great deal of experience working constructively with companies that have faced similar issues, and it looks forward to commencing its work together to create long-term, sustainable value at Commvault.

CVLT is trading at $63.55, up $6.35 or 11.10 percent.