Compuware shares jump on $2.35B buy offer - FOX 13 News

Compuware shares jump on $2.35B buy offer

Posted: Updated:

NEW YORK (AP) -- Compuware shares jumped 17 percent Monday, after Elliott Management offered to buy the software development company for about $2.35 billion.

The New York-based investment firm wants to acquire Compuware Corp. for $11 per share. The offer represents a 15 percent premium over its Friday closing stock price.

Elliott currently holds an 8 percent stake in Compuware. It said that while the Detroit-based company has strong assets, its profitability and growth have significantly lagged in recent years.

Elliott 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.

Officials at Compuware weren't immediately available.

The offer comes about a month after Compuware founder Peter Karmanos Jr. announced plans to step down as executive chairman next year. He stepped down as CEO in 2011.

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 midday trading, Compuware shares rose $1.37, or 14 percent, to $10.91, 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.

  • Your MoneyMore>>

  • Getting married? You may want your prenup to protect your 'digital privacy'

    Getting married? You may want your prenup to protect your 'digital privacy'

    Friday, April 18 2014 10:11 PM EDT2014-04-19 02:11:48 GMT
    Realty TV star Kim Kardashian probably wished she did have one before she walked down the aisle with Kris Humphries. We might never have known about Tiger Woods' cheating ways if he had one. And figure skater Johnny Weir is insisting on one as part of his post-nuptial agreement. What is it? A digital privacy clause. New York City divorce lawyer Bettina Hindin says once you push "send" someone can find it.
    Realty TV star Kim Kardashian probably wished she did have one before she walked down the aisle with Kris Humphries. We might never have known about Tiger Woods' cheating ways if he had one. And figure skater Johnny Weir is insisting on one as part of his post-nuptial agreement. What is it? A digital privacy clause. New York City divorce lawyer Bettina Hindin says once you push "send" someone can find it.
  • Grocery-store etiquette

    Grocery-store etiquette

    Friday, April 18 2014 7:24 PM EDT2014-04-18 23:24:07 GMT
    Whether barricading shopping aisles with abandoned carts, massaging every piece of fruit in the building, or blankly staring at a shelf of items so no one else can pick one, grocery store pests can turn a quick trip to restock your fridge into a nightmare.
    Whether barricading shopping aisles with abandoned carts, massaging every piece of fruit in the building, or blankly staring at a shelf of items so no one else can pick one, grocery store pests can turn a quick trip to restock your fridge into a nightmare. In the hope of gently educating those unclear on grocery-shopping etiquette, we asked you to help us put together a list of what not to do.
  • Expert: credit cards are not fully secure

    Expert: credit cards are not fully secure

    Friday, April 18 2014 6:49 PM EDT2014-04-18 22:49:51 GMT
    Another week and another credit card hacking at a major retailer. This time it was Michael's craft store. Consumers are uneasy because current credit card technology is antiquated. "The fact is you cannot protect your credit cards, you can't every time you give it out it is vulnerable to fraud," says Robert Siciliano, McAfee identity theft expert.
    Another week and another credit card hacking at a major retailer. This time it was Michael's craft store. Consumers are uneasy because current credit card technology is antiquated. "The fact is you cannot protect your credit cards, you can't every time you give it out it is vulnerable to fraud," says Robert Siciliano, McAfee identity theft expert.
Powered by WorldNow

FOX 13 / WTVT-TV
3213 West Kennedy Blvd.
Tampa, Florida 33609
Main: (813) 876-1313
Newsroom: (813) 870-9630
Fax: (813) 871-3135

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices