Elliott Management Offers to Buy Compuware for $2.3 Billion

On Monday, Compuware (NASDAQ: CPWR  ) shareholder Elliott Management, which owns an 8% interest in the company, offered to buy the rest of the company for $11 a share, cash, or $2.3 billion in all.

In a letter submitted to the company's board of directors, Elliott argued that its offer amounted to a sizable premium to what Compuware's shares have fetched in the market recently and called its offer "a compelling opportunity that your stockholders will find extremely attractive."

Other shareholders appear to agree. Compuware shares rose sharply in response to Elliott's offer, and at least one other shareholder, Sandell Asset Management, which owns 2.5% of Compuware's shares, has sent the board of directors a letter urging acceptance of the offer.

Further complicating matters, Compuware itself is in the process of trying to get its Covisint subsidiary listed in a new IPO.

Shares of Compuware closed the day up 12.9% at $10.76 per share.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2158511, ~/Articles/ArticleHandler.aspx, 9/14/2014 10:20:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement