By Patrick Costello
Elliott Management Corp. said Wednesday that it has a stake worth 1.2 billion euros ($1.35 billion) in SAP (SAP.XE), and it added that it supports the company's strategy review.
The U.S.-based hedge fund said it is "highly supportive" of the German software company's mid-term targets, including a cloud gross margin of 75%, as well as initiatives to improve operational efficiency.
"The company's stock has been consistently undervalued relative to its revenue growth, and today's announcement lays the groundwork for substantial value realization," Elliott said.
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