3. Activist Investor Elliott Management Targets Cognizant

Fresh off the Thanksgiving holiday, activist investor Elliott Management on Nov. 28 hit Cognizant Technology Solutions with a 16-page letter demanding a shake up its board of directors and the buyback of $2.5 billion in shares as part of what it called a value enhancement plan aimed at driving shares up by 50 percent to 69 percent over the next year. Elliott Management, which owns a 4 percent stake in the solution provider, said Teaneck, N.J.-based Cognizant is underperforming its peers across a number of financial benchmarks, including share price and valuation. The letter, which criticized Cognizant for sticking to a 20-year-old margin strategy, sent ripples through the channel community, serving as a strong reminder of the need to evolve.