Elliott offers to buy Compuware for $2.35B - Dallas News | myFOXdfw.com

Elliott offers to buy Compuware for $2.35B

Posted: Updated:

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.

  • Local NewsLocal NewsMore>>

  • Vandals trash historic Detroit cemetery

    Vandals trash historic Detroit cemetery

    Friday, July 25 2014 6:41 PM EDT2014-07-25 22:41:13 GMT
    Police are looking for suspects after vandals disturb the peace at a historic Detroit cemetery. Someone broke into a mausoleum and made a mess with spray paint and ashes.
    Police are looking for suspects after vandals disturb the peace at a historic Detroit cemetery. Someone broke into a mausoleum and made a mess with spray paint and ashes.
  • Dozens arrested with gang ties in southwest Detroit

    Dozens arrested with gang ties in southwest Detroit

    Friday, July 25 2014 6:23 PM EDT2014-07-25 22:23:34 GMT
    Right now, nearly three dozen violent criminals are off the streets. The U.S. Attorney says they have ties to the Latin Counts gang in southwest Detroit. Their arrests are part of a joint effort called Detroit One.
    Right now, nearly three dozen violent criminals are off the streets. The U.S. Attorney says they have ties to the Latin Counts gang in southwest Detroit. Their arrests are part of a joint effort called Detroit One.
  • Armada teen, April Millsap, killed while out walking the dog

    Armada teen, April Millsap, killed while out walking the dog

    Friday, July 25 2014 6:06 PM EDT2014-07-25 22:06:19 GMT
    Police say the body of 14-year-old girl, April Millsap, has been found in a wooded area near a recreational trail in the Macomb County village of Armada. Police say her death has been ruled a homicide.
    Police say the body of 14-year-old girl, April Millsap, has been found in a wooded area near a recreational trail in the Macomb County village of Armada. Police say her death has been ruled a homicide.
Powered by WorldNow

KDFW FOX 4
400 N. Griffin Street
Dallas, Texas 75202

Main Station Directory:
(214) 720-4444
News Fax:
(214) 720-3263 or (214) 720-3333

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices