Akamai shares jolted by Elliott stake reveal

Paul Singer’s Elliott Management on Friday disclosed a 6.5 per cent stake in Akamai Technologies, sending its shares 13 per cent higher in after-hours trading.

Shares of Cambridge, Massachusetts-based Akamai — which specalises in content-delivery networks and providing cloud services — are “significantly undervalued and represent an attractive investment opportunity”, the activist investor said in a regulatory filing on Friday.

Elliott said it will engage Akamai over proposals to consider strategic options for the company, including a possible sale.

So far this year, Akamai shares are down 13.3 per cent, according to Thomson Reuters data.