Elliott said to pressure HPE Board to replace CEO Antonio Neri

Investing.com -- Hewlett Packard Enterprise's (NYSE:HPE) board of directors is expected to meet in the coming days to discuss a proposal from Elliott Investment Management to replace CEO Antonio Neri, according to Semafor, citing people close to the company. Neri, a company veteran who has led HPE since 2018, has come under scrutiny amid challenges in shareholder performance and strategic execution.Elliott, earlier this week, privately communicated to HPE its belief that a leadership change is necessary, though it has not publicly outlined a specific candidate, Semafor reported. The activist investor’s $1.5 billion stake in HPE, first reported by Bloomberg and later corroborated by Investing.com, gives it meaningful influence over the roughly $20 billion enterprise IT company.Elliott has not commented publicly on the reports, but its silence may suggest the firm is strategically applying behind-the-scenes pressure as it has done in past campaigns.In a statement to Investing.com, an HPE spokesperson said the company “maintains an ongoing dialogue with our shareholders” and is confident in its strategic direction. “HPE has a proven execution track record… We are confident in our strategy of aligning our product portfolio to market inflection points and customer needs and our ability to drive long-term value and success.” the company added.The situation marks a significant escalation in Elliott’s involvement with HPE, which has seen its stock fall more than 30% over the last year but rose 11% since news of Elliott's position broke on Tuesday. Sources told Investing.com the hedge fund is aiming to unlock shareholder value and help HPE compete more effectively with rivals like Dell Technologies (NYSE:DELL), in which Elliott was previously involved.HPE’s recent acquisition efforts, most notably its pending $14 billion deal for Juniper Networks (NYSE:JNPR), have been clouded by regulatory concerns. The antitrust suit filed by the U.S. Department of Justice in April put the already delayed transaction further at risk, adding pressure on HPE’s leadership and strategic direction.Elliott previously played a role in shaping the trajectory of Juniper Networks, acquiring a 6.2% stake in 2014 before pushing for changes that led to a new CEO.The developments leave HPE’s board in a pivotal position ahead of its next meeting. While no decisions have been announced, the prospect of a leadership reshuffle adds another layer of uncertainty for the company, which has struggled to keep pace with peers amid an AI-driven reshaping of the enterprise tech landscape.This content was originally published on Investing.com