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 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.
Monday, May 13 2013 11:43 AM EDT2013-05-13 15:43:11 GMT
Hundreds of firefighters lined the streets in front of the Church of the Divine Child in Dearborn to bid farewell to 29-year-old Brian Woehlke, a Wayne-Westland firefighter killed last week in the line of duty.
Hundreds of firefighters lined the streets in front of the Church of the Divine Child in Dearborn to bid farewell to 29-year-old Brian Woehlke, a Wayne-Westland firefighter who was killed while crews battled a blaze at a Westland strip mall last week.
Monday, May 13 2013 10:13 AM EDT2013-05-13 14:13:39 GMT
Family and friends are gathering Monday to remember the life of Brian Woehlke, the 29-year-old firefighter who was killed last week while crews battled a blaze at a Westland strip mall.
Family and friends are gathering Monday to remember the life of Brian Woehlke, the 29-year-old firefighter who was killed last week while crews battled a blaze at a Westland strip mall.
Sunday, May 19 2013 10:03 PM EDT2013-05-20 02:03:31 GMT
A trip to Subway turned into a nightmare for an elderly Berkley couple Friday afternoon in Commerce Township. Oakland County Sheriffs say a man left his 74 year-old wife in the car, while he ran inside
A trip to Subway turned into a nightmare for an elderly Berkley couple Friday afternoon in Commerce Township. Oakland County Sheriffs say a man left his 74 year-old wife in the car, while he ran inside
Sunday, May 19 2013 9:08 PM EDT2013-05-20 01:08:52 GMT
It's National Boating Safety Week - a good time to learn about new boating safety regulations. Macomb County Sheriff Anthony Wickersham talked with Fox 2 about what boaters need to know.
It's National Boating Safety Week - a good time to learn about new boating safety regulations. Macomb County Sheriff Anthony Wickersham talked with Fox 2 about what boaters need to know.
Sunday, May 19 2013 8:54 PM EDT2013-05-20 00:54:31 GMT
Four people were shot and injured Sunday outside a house on Lakepoint in Detroit. The shooter, in a gold truck, is still on the loose.
Four people were shot and injured Sunday outside a house on Lakepoint in Detroit. We're told a group of 10 people were drinking and partying outside the house when a gold truck rolled down the street and started firing.
Sunday, May 19 2013 1:52 PM EDT2013-05-19 17:52:35 GMT
Authorities have identified a 20-year-old man they've arrested in the firebombing of the suburban Detroit home of an heir to the Art Van Furniture business.
Authorities have identified a 20-year-old man they've arrested in the firebombing of the suburban Detroit home of an heir to the Art Van Furniture business.
Let It Rip Weekend: Doggy Insurance, Pit Bull Bans & $15 Minimum Wage
Sunday, May 19 2013 10:33 AM EDT2013-05-19 14:33:58 GMT
This time we're talking about a new requirement in Royal Oak that has some dog owners taking out $1 million insurance policies on their pooches. Plus, Waterford Township is considering repealing their
Should owners of dangerous dogs have to take out $1 million insurance policies? Are pit bull bans a good idea? Plus, should the minimum wage be raised to $15 an hour?
Sunday, May 19 2013 12:01 AM EDT2013-05-19 04:01:16 GMT
It was supposed to be their big night, but prom turned into a big headache for teens from a local high school. Police showed up to crack down on an unauthorized limo service.
It was supposed to be their big night, but prom turned into a big headache for teens from a local high school. Police showed up to crack down on an unauthorized limo service.
