(Reuters) - Activist hedge fund Elliott Management Corp offered to buy business software maker Compuware Corp for $2.3 billion, seven months after it pushed for a sale of rival BMC Software Inc.
Elliott’s $11 per share offer represents a 15.4 percent premium to Compuware’s Friday close on the Nasdaq. Compuware’s shares rose to just below the offer price.
“We believe in the quality of Compuware’s assets — however, its execution, profitability and growth have meaningfully underperformed,” Elliott said in a letter to Compuware’s board.
Elliott said on Monday it controls 8 percent of Compuware, which makes software to manage large computer networks.
Elliott, a $20 billion investment firm founded and run by publicity-shy Paul Singer, repeatedly pressured BMC earlier this year to sell itself and appoint new directors.
Compuware filed last week for a possible initial public offering of its Covisint Corp unit, which it said would allow the business to pursue strategic options.
Shares of the company were up 15 percent at $10.95 in late morning trading on Monday on the Nasdaq.
Reporting by Sayantani Ghosh and Sruthi Ramakrishnan in Bangalore; Editing by Saumyadeb Chakrabarty