Cognizant To Take Elliott's Value Creation Suggestions Under Advisement

Cognizant Technology Solutions Corp. said Monday that it "values" the suggestions made by activist investor Elliott Management Corp., and "will respond in due course." The information technology consulting company said it had an "introductory discussion" after receiving a letter from Elliott, the hedge fund run by billionaire investor Paul Singer, after receiving the letter early Monday. "The Cognizant board of directors and management team regularly review the Company's strategic priorities and opportunities towards the goal of enhancing value for all shareholders," Cognizant said in a statement. Elliott's letter detailed value creation measures that could push the stock up by about 70% by the end of 2017. Cognizant's stock, which climbed 6.9% in afternoon trade, has lost 5.1% year to date, while shares of rival Accenture PLC have run up 16% and the S&P 500 has climbed 7.9%.