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.
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.
Friday, May 17 2013 8:58 AM EDT2013-05-17 12:58:06 GMT
Gallery on the Boulevard is now open to the public. The restored 1918 residence, located in the Historic District of Pontiac's West End, is now home to wonderful works of art.
Gallery on the Boulevard is now open to the public. The restored 1918 residence, located in the Historic District of Pontiac's West End, is now home to wonderful works of art.
Wednesday, May 15 2013 1:36 PM EDT2013-05-15 17:36:38 GMT
A pair of osprey that made a nest on a power pole in Berlin Township, near the Rockwood Landfill will be getting a new home thanks to crews from DTE Energy.
A pair of osprey that made a nest on a power pole in Berlin Township, near the Rockwood Landfill will be getting a new home thanks to crews from DTE Energy.
Tuesday, May 21 2013 8:17 PM EDT2013-05-22 00:17:22 GMT
We are learning more about the past of the man currently in police custody in connection with the murder of 35-year-old Sabrina Gianino.
We are learning more about the past of the man currently in police custody in connection with the murder of 35-year-old Sabrina Gianino. 42-year-old Myron Williams is on probation in Michigan for a drug paraphernalia charge. He also has quite a past in Louisiana.
Tuesday, May 21 2013 3:43 PM EDT2013-05-21 19:43:35 GMT
Brian Woehlke and his family
All funds collected will be donated to the Westland Fire Fighters Charity's fund for the family of fallen firefighter Brian Woehlke, who passed away while battling a Westland fire on May 8.
All funds collected will be donated to the Westland Fire Fighters Charity's fund for the family of fallen firefighter Brian Woehlke, who passed away while battling a Westland fire on May 8.
Wednesday, May 22 2013 12:02 AM EDT2013-05-22 04:02:09 GMT
Detroit police believe a man in a surveillance photo is responsible for a kidnapping, carjacking, sexual assault and armed robbery on the city's east side.
Detroit police believe a man in a surveillance photo is responsible for a kidnapping, carjacking, sexual assault and armed robbery on the city's east side.
Tuesday, May 21 2013 11:24 PM EDT2013-05-22 03:24:52 GMT
More than 2,000 people were in attendance to hear Donald Trump speak at Oakland County's Lincoln Day Dinner. Before the event, he told reporters he believes Detroit is "on the right path."
More than 2,000 people were in attendance to hear Donald Trump speak at Oakland County's Lincoln Day Dinner. Before the event, he told reporters he believes Detroit is "on the right path."
Tuesday, May 21 2013 10:59 PM EDT2013-05-22 02:59:19 GMT
Some Detroiters say their neighbor is hoarding dogs. She has been accused of doing it before. In 2011, 25 dogs were removed from her home, but we're told a case was never brought.
Some Detroiters say their neighbor is hoarding dogs. She has been accused of doing it before. In 2011, 25 dogs were removed from her home, but we're told a case was never brought.
Tuesday, May 21 2013 10:14 PM EDT2013-05-22 02:14:08 GMT
Innuendo, sexual advances and an overnight stay in Lansing -- a politician's former aide claims he had to endure a nightmare on the job. Now a sexual harassment lawsuit has been filed against Rep. Brian Banks.
Innuendo, sexual advances and an overnight stay in Lansing -- a politician's former aide claims he had to endure a nightmare on the job. Now a sexual harassment lawsuit has been filed against Rep. Brian Banks.
Tuesday, May 21 2013 8:22 PM EDT2013-05-22 00:22:30 GMT
An expansive plan to merge two southeastern Michigan health systems into a single, $6.4 billion nonprofit organization with 10 hospitals has fizzled out.
An expansive plan to merge two southeastern Michigan health systems into a single, $6.4 billion nonprofit organization with 10 hospitals has fizzled out.
Tuesday, May 21 2013 7:46 PM EDT2013-05-21 23:46:25 GMT
Judge Wade McCree took the witness stand on Tuesday. The embattled judge had a lot to say about his affair with a woman who stood in his courtroom. His wife had something to say about it, too.
Judge Wade McCree took the witness stand on Tuesday. The embattled judge had a lot to say about his affair with a woman who stood in his courtroom. His wife had something to say about it, too.
Tuesday, May 21 2013 6:48 PM EDT2013-05-21 22:48:42 GMT
Trained Salvation Army counselors are being mobilized to head down to the tornado disaster area in Oklahoma to not only help with the victims, but the first responders, as well.
Trained Salvation Army counselors are being mobilized to head down to the tornado disaster area in Oklahoma to not only help with the victims, but the first responders, as well.
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