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.
Saturday, May 18 2013 5:58 PM EDT2013-05-18 21:58:26 GMT
Police says a gay man was shot and killed in Greenwich Village after a man with a gun shouted homophobic slurs at him early Saturday morning. According to authorities, the 32-year-old victim was shot
Police says a gay man was shot and killed in Greenwich Village after a man with a gun shouted homophobic slurs at him early Saturday morning. According to authorities, the 32-year-old victim was shot
Saturday, May 18 2013 5:52 PM EDT2013-05-18 21:52:21 GMT
Nassau County police have identified the career criminal who allegedly shot and killed a Hofstra University student in a home invasion robbery early Friday morning.
Nassau County police have identified the career criminal who allegedly shot and killed a Hofstra University student in a home invasion robbery early Friday morning.
Saturday, May 18 2013 4:03 PM EDT2013-05-18 20:03:41 GMT
Officials in Connecticut say it was amazing that there were no fatalities or more injuries after two Metro-North trains collided around 6 p.m. in Fairfield Friday evening.
Officials in Connecticut say it was amazing that there were no fatalities or more injuries after two Metro-North trains collided around 6 p.m. in Fairfield Friday evening.
Saturday, May 18 2013 7:49 AM EDT2013-05-18 11:49:20 GMT
An airline official says a US Airways flight with 34 people aboard was forced to make a belly landing at Newark International Airport after experiencing landing gear trouble. No injuries were reported.
An airline official says a US Airways flight with 34 people aboard was forced to make a belly landing at Newark International Airport after experiencing landing gear trouble. No injuries were reported.
Friday, May 17 2013 9:12 PM EDT2013-05-18 01:12:56 GMT
A welcome sight in Coney Island: workers cleaning umbrellas, wiping down counters, and putting the finishing touches on a rebuilt Original Nathan's Famous.
A welcome sight in Coney Island: workers cleaning umbrellas, wiping down counters, and putting the finishing touches on a rebuilt Original Nathan's Famous.
Friday, May 17 2013 8:53 PM EDT2013-05-18 00:53:52 GMT
The New Jersey Sports and Exposition Authority has approved the master plan for the American Dream megamall in the Meadowlands sports complex. The approval at Friday's special board meeting means the
The New Jersey Sports and Exposition Authority has approved the master plan for the American Dream megamall in the Meadowlands sports complex. The approval at Friday's special board meeting means the
Friday, May 17 2013 8:28 PM EDT2013-05-18 00:28:27 GMT
Democratic Assemblyman Vito Lopez, who represents New York City, said he will resign June 20 amid a sexual harassment scandal and run for a City Council seat.
Democratic Assemblyman Vito Lopez, who represents New York City, said he will resign June 20 amid a sexual harassment scandal and run for a City Council seat.
Friday, May 17 2013 5:54 PM EDT2013-05-17 21:54:45 GMT
The big game will be played in New Jersey but the big party will be in New York City. Organizers call it "Super Bowl Boulevard."
The big game will be played in New Jersey but the big party will be in New York City. Organizers call it "Super Bowl Boulevard": it will stretch from 44th Street on Broadway all the way to 34th Street.
Friday, May 17 2013 11:55 PM EDT2013-05-18 03:55:04 GMT
"We intend to build cars in North America for [the] North American market, build cars in Europe for the European market and build them in Asia for the Asian market," said Don Graunstadt.
"We intend to build cars in North America for [the] North American market, build cars in Europe for the European market and build them in Asia for the Asian market," said the CEO of North American Operations for the electric car company.
Friday, May 17 2013 10:19 PM EDT2013-05-18 02:19:58 GMT
It can creep up on you without you realizing it. One day you step on the scale and you're obese. That's what happened to a St. Clair Shores woman who never though she would lose the weight.
It can creep up on you without you realizing it. One day you step on the scale and you're obese. That's what happened to a St. Clair Shores woman who never though she would lose the weight.
Friday, May 17 2013 8:43 PM EDT2013-05-18 00:43:34 GMT
Sabrina Gianino was found dead with a cord around her neck inside a Grosse Pointe Park home early Thursday morning. The medical examiner has ruled her death a homicide.
Sabrina Gianino was found dead with a cord around her neck inside a Grosse Pointe Park home early Thursday morning. The medical examiner has ruled her death a homicide.
Friday, May 17 2013 7:48 PM EDT2013-05-17 23:48:59 GMT
A Molotov cocktail was thrown through a kitchen window of a waterfront mansion on Whittier Street in Grosse Pointe Park around 3:20 a.m. Friday. Fortunately, someone inside put it out.
A Molotov cocktail was thrown through a kitchen window of a waterfront mansion on Whittier Street in Grosse Pointe Park around 3:20 a.m. Friday. Fortunately, someone inside put it out.
Friday, May 17 2013 6:26 PM EDT2013-05-17 22:26:25 GMT
Nation of Islam leader Louis Farrakhan urged Detroit's pastors and majority black population Friday to join him in an effort to buy neglected properties and take other steps to help revitalize the struggling city.
Nation of Islam leader Louis Farrakhan urged Detroit's pastors and majority black population Friday to join him in an effort to buy neglected properties and take other steps to help revitalize the struggling city where the movement started more than 80 years ago.
