Chap-Cap reduces stake in Packeteer to 7.2%

By Lisa Kerner

Charlotte, N.C., Oct. 3 - Investors led by Chap-Cap Activist Partners Master Fund, Ltd. sold 908,988 shares of Packeteer, Inc. stock between Aug. 8 and Oct. 3 priced from $7.87 to $7.94 each.

The investors also sold call options for 8,699 shares for between $0.80 and $2.90 per contract.

The transactions were reported in a schedule 13D filing with the Securities and Exchange Commission.

Chap-Cap and the reporting persons may in the future consider a variety of different alternatives to achieving their goal of maximizing shareholder value, including negotiated transactions, tender offers, proxy contests, consent solicitations or other actions, the filing stated.

The reporting persons own 2,586,884 shares, or 7.2%, of Packeteer's outstanding stock.

It was previously reported that Chap-Cap and its affiliates bought 3,490,232 shares of Packeteer between July 2 and Aug. 9 priced from $7.13 to $7.76 per share for a 9.7% stake in the company.

Chap-Cap principal Robert L. Chapman Jr. attempted to contact each member of Packeteer's board on Aug. 13 to find out why chief executive officer David G. Cote refuses to discuss the company's strategic direction and operating underperformance with Chap-Cap, a prior SEC filing stated.

Previously, Chapman demanded that Packeteer hire an investment bank to maximize shareholder value.

Based in Cupertino, Calif., Packeteer provides wide area network application delivery systems to enterprise customers and service providers.

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