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.
Tuesday, June 18 2013 11:38 PM EDT2013-06-19 03:38:44 GMT
After initially defying federal regulators, Chrysler abruptly agreed Tuesday to recall some older-model Jeeps with fuel tanks that could rupture and cause fires in rear-end collisions.
After initially defying federal regulators, Chrysler abruptly agreed Tuesday to recall some older-model Jeeps with fuel tanks that could rupture and cause fires in rear-end collisions.
Tuesday, June 18 2013 11:29 PM EDT2013-06-19 03:29:11 GMT
An angry pastor is trying to keep his cool. He is mad at whoever tore apart his air conditioning unit to steal the copper, but he also says the entire community shares the blame.
An angry pastor is trying to keep his cool. He is mad at whoever tore apart his air conditioning unit to steal the copper, but he also says the entire community shares the blame.
Tuesday, June 18 2013 9:46 PM EDT2013-06-19 01:46:58 GMT
Nearly a hundred years ago, two girls from Detroit put a message in a bottle and threw it into the waters of the St. Clair River. Now that message is back on dry land after being found by a diver in 30 feet of water.
Nearly a hundred years ago, two girls from Detroit put a message in a bottle and threw it into the waters of the St. Clair River. Now that message is back on dry land after being found by a diver in 30 feet of water.
Tuesday, June 18 2013 7:26 PM EDT2013-06-18 23:26:33 GMT
The latest dig in the search for former Teamsters' boss Jimmy Hoffa will resume on Wednesday in an Oakland Township field. So far, crews have found two concrete slabs and animal bones.
The latest dig in the search for former Teamsters' boss Jimmy Hoffa will resume on Wednesday in an Oakland Township field. So far, crews have found two concrete slabs and animal bones.
Tuesday, June 18 2013 4:54 PM EDT2013-06-18 20:54:19 GMT
Who will open for Bon Jovi at Ford Field on July 18? Your vote will decide. 20 bands left in the Fox Rocks contest. Voting period: Now through July 10. Time to 'Fox Rocks' the vote.
Who will open for Bon Jovi at Ford Field on July 18? Your vote will decide. 20 bands left in the Fox Rocks contest. Voting period: Now through July 10. Time to 'Fox Rocks' the vote.
Tuesday, June 18 2013 12:20 PM EDT2013-06-18 16:20:44 GMT
Detroit Metropolitan Airport officials evacuated a section of the McNamara Terminal Tuesday morning after a canine picked up the scent of explosives on the apron, where planes load.
Detroit Metropolitan Airport officials evacuated a section of the McNamara Terminal Tuesday morning after a canine picked up the scent of explosives on the apron, where planes load.
KTTV FOX 11 1999 S. Bundy Dr. Los Angeles CA 90025
