Billionaire’s investment boosts Rackspace stock

Aug 15, 2014
Austin Business Journal

Rackspace Hosting’s stock moved higher on Thursday on news that hedge fund billionaire Daniel Loeb had purchased a multi-million dollar stake in the cloud-computing company

Loeb’s Third Point LLC had purchased shares valued at $244 million by the end of June, according to a filing with the U.S. Securities and Exchange Commission, Bloomberg reports

Rackspace shares reached as high as $31.45 on the news before finishing Thursday's session at $31.15, up $1.25 or just over 4 percent, in heavy volume of more than 5 million shares

Rackspace, which has a significant Austin presence, is in the process of shifting its 570 Austin-area employees into the former Dillard's location at Highland Mall operated by Austin Community College

The San Antonio-based company announced earlier this year that it was looking at “strategic proposals” and had retained the services of investment banker Morgan Stanley to evaluate the proposals and explore any other alternatives

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