Cubic’s stock soars after Paul Singer’s hedge fund confirms stake

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Shares of Cubic Corp. soared 28.5% in morning trading Monday, after Elliott Management, the hedge fund founded by billionaire Paul Singer, confirmed that it had acquired a 15% economic interest in the defense and transportation systems company. Elliott said it has partnered with a private equity firm to pursue an opportunity. The confirmation of its acquired stake comes after Cubic announced earlier Monday that it had adopted a limited-duration shareholders rights plan, also known as a “poison pill,” as a result of the acquired stake. “Cubic’s board [of directors] is committed to creating long-term value and ensuring that our shareholders are able to realize the full potential of their investment in the company,” said David Melcher, lead independent director. “The adoption of the Rights Plan is intended to provide the board with time to make informed decisions and prevent any third party from obtaining control of Cubic in a manner and at a price that are not in the best interests of Cubic’s shareholders.” Cubic’s stock has shed 10.3% year to date, while the S&P 500 has gained 0.2%.
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