Activist investment company Elliott Management Corp., Monday offered to acquire Compuware Corp. (CPWR) for $11.00 per share, following which Compuware shares surged 14 percent on the Nasdaq. However, the stock still trades below the offer price.
The $11.00 per share offer represents a premium of 15.4 percent over Compuware's Friday closing price. Elliot Management holds about 8 percent stake in Compuware, making it one of the largest stockholders of the company.
In a communique to Compuware Board, Elliot Management said, "Compuware is a long-established company that we have followed closely for several years. We believe in the quality of Compuware's assets - however, its execution, profitability and growth have meaningfully underperformed. Prior to the filing of our 13D, Compuware's stock has underperformed the Nasdaq and S&P 500 by an average of 6 and 34 percentage points over the last one and two years, respectively."
Elliot also noted that it is confident it can obtain financing for the acquisition.
CPWR is currently trading at $10.89, up $1.36 or 14.27%, on a volume of 6.9 million shares, above the three-month average volume of 2.9 million shares.
by RTT Staff Writer
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