Citrix Makeover: 9 Sweeping Changes Being Demanded By Elliott Management
8. Increase Share Repurchases
"If effectively executed, the New Citrix Plan will result in tremendous value creation over the next several years," the letter to the board asserts. Cohn said Citrix shares are currently "deeply undervalued."
And Citrix isn't making the most of its balance sheet and all the cash in it, "even at today’s level of inefficiency." A little more debt would mean a lot more capacity to buy back shares through 2017 while maintaining an investment grade rating.
"Debt financing remains at historically attractive levels, and we believe Citrix should take advantage of this opportunity to repurchase 56 – 61 million shares from now through 2017," the plan goes.