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.
Friday, May 24 2013 12:07 PM EDT2013-05-24 16:07:12 GMT
Officials say the Detroit Institute of Arts' collection could be sold to help satisfy creditors if the financially troubled city of Detroit seeks bankruptcy protection.
Officials say the Detroit Institute of Arts' collection could be sold to help satisfy creditors if the financially troubled city of Detroit seeks bankruptcy protection.
Friday, May 24 2013 8:27 AM EDT2013-05-24 12:27:33 GMT
If you'd like to contribute to the Oklahoma tornado relief efforts, FOX 2's Amy Andrews says you can drop off supplies at the Democratic Club of Taylor (23400 Wick Rd.) now through Sunday.
If you'd like to contribute to the Oklahoma tornado relief efforts, FOX 2's Amy Andrews says you can drop off supplies at the Democratic Club of Taylor (23400 Wick Rd.) now through Sunday.
Tuesday, May 21 2013 6:25 PM EDT2013-05-21 22:25:11 GMT
The American Red Cross is working in a variety of ways and from several different areas of the country to help the victims of the tornadoes which struck in the nation's heartland.
The American Red Cross is working in a variety of ways and from several different areas of the country to help the victims of the tornadoes which struck in the nation's heartland.
Saturday, May 25 2013 9:17 PM EDT2013-05-26 01:17:14 GMT
Windsor and Detroit officials have submitted a bid to host Wrestlemania in 2015 and/or 2016. It has become one of the biggest sports entertainment events in the country.
Windsor and Detroit officials have submitted a bid to host Wrestlemania in 2015 and/or 2016. It has become one of the biggest sports entertainment events in the country. Wrestlemania is the SuperBowl of sports and entertainment.
Saturday, May 25 2013 8:29 PM EDT2013-05-26 00:29:51 GMT
A man accused of killing his wife and two children in Novi in 2008 has been extradited from India to Metro Detroit to face murder charges. His arrest could end a five-year-old murder mystery.
A man accused of killing his wife and two children in Novi in 2008 has been extradited from India to Metro Detroit to face murder charges. His arrest could end a five-year-old murder mystery.
Friday, May 24 2013 11:58 PM EDT2013-05-25 03:58:44 GMT
Police say a woman was held captive at a hotel for several days and forced to have sex around the clock with multiple men, whoever would pay the price. 26-year-old Deante Brown now faces sex trafficking charges.
Police say a woman was held captive at a hotel for several days and forced to have sex around the clock with multiple men, whoever would pay the price. 26-year-old Deante Brown now faces sex trafficking charges.
Friday, May 24 2013 11:18 PM EDT2013-05-25 03:18:53 GMT
Dairy Boy keeps getting hit with tire tracks in the yard, so they brought in boulders to act as a visual warning and physical reminder not to cut the corner. Now they've been told those rocks must go.
Dairy Boy keeps getting hit with tire tracks in the yard, so they brought in boulders to act as a visual warning and physical reminder not to cut the corner. Now they've been told those rocks must go.
Friday, May 24 2013 10:34 PM EDT2013-05-25 02:34:36 GMT
The pediatrician called him a big baby, his parents believed their boy was genetically destined to be obese, but he proved them all wrong. One day, he made a critical decision and became a weight loss winner.
The pediatrician called him a big baby, his parents believed their boy was genetically destined to be obese, but he proved them all wrong. One day, he made a critical decision and became a weight loss winner.
Friday, May 24 2013 8:54 PM EDT2013-05-25 00:54:08 GMT
More than 150 dogs have been removed from locations owned by a breeding facility in Michigan's northern Lower Peninsula, where officials said the animals were living in outdoor enclosures with little protection.
More than 150 dogs have been removed from locations owned by a breeding facility in Michigan's northern Lower Peninsula, where officials said the animals were living in outdoor enclosures with little protection.
Friday, May 24 2013 7:06 PM EDT2013-05-24 23:06:29 GMT
Krazy Jim's Blimpy Burger, an institution for generations of University of Michigan students in Ann Arbor, is about to undergo a historic change of address.
Krazy Jim's Blimpy Burger, an institution for generations of University of Michigan students in Ann Arbor, is about to undergo a historic change of address.
Friday, May 24 2013 6:54 PM EDT2013-05-24 22:54:49 GMT
Gleaming stainless steel circa 1975 provides the once futuristic setting for Southfield's best-kept secret -- Anthony's Coney Cafe inside the IBM building at Nine Mile and Southfield Road.
Gleaming stainless steel circa 1975 provides the once futuristic setting for Southfield's best-kept secret -- Anthony's Coney Cafe inside the IBM building at Nine Mile and Southfield Road.
Friday, May 24 2013 5:31 PM EDT2013-05-24 21:31:37 GMT
A home explosion in Royal Oak back in February killed a man and damaged dozens of houses. Now some homeowners are complaining that insurance companies are making repairs difficult.
A home explosion in Royal Oak back in February killed a man and damaged dozens of houses. Now some homeowners are complaining that insurance companies are making repairs difficult.
Friday, May 24 2013 1:52 PM EDT2013-05-24 17:52:39 GMT
Alan Lee asks Wallace if the subject of Viagara will 'come up' in Wallace's scheduled interview with former Senator Bob Dole. Wallace responds, "Comes up, really that's what you're going to say?"
Alan Lee asks Wallace if the subject of Viagara will 'come up' in Wallace's scheduled interview with former Senator Bob Dole. Wallace responds, "Comes up, really that's what you're going to say?"
WJBK-TV | Fox 2 16550 West Nine Mile Rd. Southfield, MI 48075
Main Station: (248) 557-2000 Newsroom: (248) 552-5103
