By Chelsey Dulaney
Juniper Networks Inc. has agreed to add two new independent
directors to its board in a compromise with activist investor
Elliott Management Corp. over board representation.
The Wall Street Journal reported in December that Elliott, which
owns a roughly 9% stake in Juniper, had privately recommended to
the Sunnyvale, Calif., company a number of new director candidates
in an effort to add more industry experience to its 11-person board
and help improve Juniper's operations after the company suffered
setbacks, according to people familiar with the matter.
Juniper said Tuesday that it has appointed Jim Dolce, chief
executive of mobile security company Lookout, and Rahul Merchant,
who runs his own advisory firm, to its board. The appointments are
effective March 1. Juniper said it identified the candidates
through a search process started last year that also evaluated
Elliott's recommendations.
Elliott, meanwhile, has agreed to support Juniper's board
nominees at its annual meeting.
Juniper, one the largest competitors to industry giant Cisco
Systems Inc., makes routing and switching systems and other
equipment used by telecommunications companies and other big
network operators.
Juniper has struggled with lower-than-expected demand,
particularly in the U.S.
Elliott first disclosed its stake in Juniper more than a year
ago. Elliott has since convinced the company to cut costs and buy
back more stock.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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