(Bloomberg) -- Activist investor Elliott Investment Management has built a sizable position in Mercury Systems Inc. and has made an offer to acquire the defense electronics manufacturer, according to people familiar with the matter.
The size of Elliott's stake and the price it has offered for Mercury couldn't be determined. Talks are ongoing and may not result in a transaction, the people said, asking not to be identified because the matter is private.
Andover, Massachusetts-based Mercury rose as much as 7.8% in New York trading Wednesday. The stock was up 4.4% to $67.36 at 2:57 p.m., giving the company a market value of $3.8 billion. The stock had fallen about 6% in the past year prior to the news of Elliott's approach.
A representative for Elliott declined to comment. A representative for Mercury Systems wasn't immediately available for comment.
Elliott is the latest activist to take a stake in Mercury. In December, Jana Partners disclosed a position in the company and planned to push it to explore a potential sale, Bloomberg News reported the time.
Starboard Value, the activist fund run by Jeff Smith, also disclosed a 7.3% stake in the company in January, and urged the company to eliminate or revise its so-called poison pill, which makes it difficult for anyone to build a large stake.
Mercury is one of the last remaining independent, public suppliers of sophisticated electronics for the aerospace and defense industry after a wave of consolidation in the sector. Last year, private equity firm Veritas Capital agreed to sell Abaco Systems Inc. to Ametek Inc., while FLIR Systems' agreed to sell to Teledyne Technologies Inc.
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