US Compuware Corporation (NASDAQ:CPWR) said it had received an unsolicited, conditional, non-binding bid from hedge fund Elliott Management Corporation, which holds an 8% stake in the enterprise software maker.
The buyer is offering USD11.00 (EUR8.35) per share, which represents a premium of 15.4% to the company’s closing stock price on Friday and values the target at USD2.3bn, according to Reuters calculations.
In a letter to Compuware’s board, Elliott said that it believes in the quality of the company’s assets but its profitability and growth had meaningfully underperformed. Elliott added that it would be able to find financing for the deal and insisted on meeting the target’s board as soon as possible.
In response, Compuware’s board stated that it would examine the proposal together with its financial and legal advisors.
Last Friday, the software firm filed for a possible initial public offering (IPO) of its Covisint Corp unit, saying that the move would allow it to pursue strategic opportunities. It expects to carry out the IPO in three to six months.