This Hedge Fund’s Stance on Struggling Company Starting to Bear Fruit

On September 10, 2014, the former JDS Uniphase Corporation announced its intentions to divide the company into two separate publicly-traded companies: Lumentum, an optical components and commercial lasers company; and Viavi, a network and service enablement and optical coatings company that consists of the network enablement, service enablement, and optical security and performance products segments. Tom Sandell’s letter to Viavi’s Board also indicated that the company should evaluate strategic alternatives for these three segments, including their possible sale. Let’s not forget to mention that the shares of Viavi Solutions have declined nearly 30% since the beginning of the year, but appear to be in a bottoming out phase, thanks to the constructive dialogue between the two parties. Even more to that, the stock advanced by more than 2% on Thursday following this announcement.

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