Why Cubic Jumped More Than 25% Today

Shares of defense and transportation technology systems company Cubic (NYSE: CUB) are up 25% as of 11:10 a.m. EDT. In an announcement today, the company disclosed a stake by activist investment manager Elliott Management, and said it had adopted a limited-duration shareholder rights plan, saying it believes it has "excellent" prospects as a stand-alone company. The shareholder rights plan does not prevent the board of directors from considering any fair offer that is in shareholders' best interest, and does not deter any potential offer.