NEW YORK (AP) -- Compuware shares jumped 17 percent Monday, after one of its largest shareholders offered to buy the software development company for about $2.35 billion in a bid to turn it around.
New York-based investment firm Elliott Management, which holds an 8 percent stake in Compuware Corp., wants to acquire it for $11 per share. The offer represents a 15 percent premium over its Friday closing stock price.
"Compuware is a long-established company that we have followed closely for several years," Elliott said in its letter to Compuware's board. "We believe in the quality of Compuware's assets -- however, its execution, profitability and growth have meaningfully underperformed."
In its letter, Elliott touted its experience in the software industry and familiarity with Compuware, saying that it's "uniquely situated" to get the best value for the company's shareholders. It said it's confident that it can find financing for such a deal and wants to meet with the company's board as soon as possible.
Other technology-related holdings of Elliott include BMC Software, Brocade Communications and Emulex Corp., according to FactSet.
Later on Monday, Compuware released a statement saying that it received the offer and would review it with its financial and legal advisers.
The offer comes about a month after Peter Karmanos Jr. announced plans to step down as executive chairman of Compuware next year. He stepped down as CEO in 2011. Karmanos founded the company in 1973.
In addition, Compuware said Friday that it that it filed for a possible initial public offering of its Covisint Corp. unit and could conduct the IPO in three to six months.
The company said the IPO would give Covisint more flexibility to pursue strategic opportunities and increase its visibility. Covisint specializes in secure, industry specific communication and collaboration, according to its website.
Compuware has struggled amid sluggish global economic conditions and the European economic crisis. In October, it said its fiscal second-quarter profit plunged 53 percent and issued a weak forecast for the full year. But despite significant volatility, the company's shares have risen about 15 percent since the beginning of the year.
In afternoon trading, Compuware shares rose $1.23, or 13 percent, to $10.76, after peaking at $11.16 earlier in the day, passing their previous 52-week high of $10.25 and marking their highest price since May 2011.
Tuesday, May 21 2013 6:25 PM EDT2013-05-21 22:25:11 GMT
The American Red Cross is working in a variety of ways and from several different areas of the country to help the victims of the tornadoes which struck in the nation's heartland.
The American Red Cross is working in a variety of ways and from several different areas of the country to help the victims of the tornadoes which struck in the nation's heartland.
Friday, May 17 2013 8:58 AM EDT2013-05-17 12:58:06 GMT
Gallery on the Boulevard is now open to the public. The restored 1918 residence, located in the Historic District of Pontiac's West End, is now home to wonderful works of art.
Gallery on the Boulevard is now open to the public. The restored 1918 residence, located in the Historic District of Pontiac's West End, is now home to wonderful works of art.
Thursday, May 23 2013 7:38 PM EDT2013-05-23 23:38:56 GMT
Kwame Kilpatrick, now a convicted felon, officially fired his longtime attorney Jim Thomas on Thursday. It's a move that will delay the former mayor's sentencing.
Kwame Kilpatrick, now a convicted felon, officially fired his longtime attorney Jim Thomas on Thursday. It's a move that will delay the former mayor's sentencing.
Thursday, May 23 2013 1:30 PM EDT2013-05-23 17:30:30 GMT
The incident forcing the partial evacuation of Detroit Metropolitan Airport for hours one day last month was triggered by law enforcement officials' belief that they'd found an improvised explosive device in luggage.
The incident forcing the partial evacuation of Detroit Metropolitan Airport for hours one day last month was triggered by law enforcement officials' belief that they'd found an improvised explosive device in luggage.
Thursday, May 23 2013 12:28 PM EDT2013-05-23 16:28:22 GMT
One week after appearing via satellite on the American Idol season finale the Queen of Soul has rescheduled next month's planned performance at the DTE Energy Music Theatre.
One week after appearing via satellite on the American Idol season finale the Queen of Soul has rescheduled next month's planned performance at the DTE Energy Music Theatre.
Thursday, May 23 2013 10:59 AM EDT2013-05-23 14:59:53 GMT
Bugs are important to our environment and can even tell us about our water quality. That's why dozens on local students have been taking part in bug hunts.
Bugs are important to our environment and can even tell us about our water quality. That's why dozens on local students have been taking part in bug hunts.
