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.
Wednesday, June 12 2013 7:19 PM EDT2013-06-12 23:19:12 GMT
Jurors in the involuntary manslaughter trial of a Detroit police officer have watched a demonstration of a stun grenade like the one used during a raid that killed a girl.
Jurors in the involuntary manslaughter trial of a Detroit police officer have watched a demonstration of a stun grenade like the one used during a raid that killed a girl.
Monday, June 10 2013 7:54 AM EDT2013-06-10 11:54:22 GMT
The auto industry is about to go on a hiring spree as car makers and parts suppliers race to find engineers, technicians and factory workers to build the next generation of vehicles.
The auto industry is about to go on a hiring spree as car makers and parts suppliers race to find engineers, technicians and factory workers to build the next generation of vehicles.
Thursday, June 6 2013 7:44 AM EDT2013-06-06 11:44:22 GMT
The TSA is abandoning a plan to allow passengers to carry small knives onto planes in the face of fierce congressional and industry opposition, the head of the agency said Wednesday.
The TSA is abandoning a plan to allow passengers to carry small knives onto planes in the face of fierce congressional and industry opposition, the head of the agency said Wednesday.
Wednesday, June 19 2013 11:26 PM EDT2013-06-20 03:26:37 GMT
Mitchell Young's trial got underway on Wednesday. He is accused in the murder of Robert Cipriano and the beatings of Robert's wife, Rose, and son, Sal.
Mitchell Young's trial got underway on Wednesday. He is accused in the murder of Robert Cipriano and the beatings of Robert's wife, Rose, and son, Sal.
Wednesday, June 19 2013 9:52 PM EDT2013-06-20 01:52:15 GMT
The Detroit Red Wings and city officials on Wednesday announced a $650 million plan for a new arena development for the NHL team in Detroit's downtown entertainment and sports district.
The Detroit Red Wings and city officials on Wednesday announced a $650 million plan for a new arena development for the NHL team in Detroit's downtown entertainment and sports district.
Wednesday, June 19 2013 9:39 PM EDT2013-06-20 01:39:53 GMT
The state's school superintendent and treasurer could dissolve a deficit-ridden district and send the students to nearby schools under legislation narrowly approved Wednesday by a divided Michigan Senate.
The state's school superintendent and treasurer could dissolve a deficit-ridden district and send the students to nearby schools under legislation narrowly approved Wednesday by a divided Michigan Senate.
Wednesday, June 19 2013 9:33 PM EDT2013-06-20 01:33:24 GMT
Gov. Rick Snyder on Wednesday cut short his trade trip to Israel to return home and lobby reluctant fellow Republicans to expand Medicaid to more Michigan adults...
Gov. Rick Snyder on Wednesday cut short his trade trip to Israel to return home and lobby reluctant fellow Republicans to expand Medicaid to more Michigan adults, as the clock ticked before lawmakers break for the summer.
Wednesday, June 19 2013 9:21 PM EDT2013-06-20 01:21:00 GMT
Dequindre-Emery Playlot had become grossly overgrown. George Bearid said enough is enough and began mowing on Sunday. Now several neighbors have joined the effort to clean up the park.
Dequindre-Emery Playlot had become grossly overgrown. George Bearid said enough is enough and began mowing on Sunday. Now several neighbors have joined the effort to clean up the park.
Wednesday, June 19 2013 8:03 PM EDT2013-06-20 00:03:28 GMT
"I don't blame the clerk," Mike Duggan said as he ended his mayoral bid. Two courts ruled he cannot be on the ballot because he had not lived in Detroit for a year when he filed.
"I don't blame the clerk," Mike Duggan said as he ended his mayoral bid. Two courts ruled he cannot be on the ballot because he had not lived in Detroit for a year when he filed.
