Report: Compuware Shopping For Better Offer; Stock Jumps
SOUTHFIELD — Reuters news service is reporting that Compuware Corp. has held talks with buyout firms in hopes of getting a better offer than the $11-a-share, $2.3 billion bid for the company made in December by a New York investment firm, Elliott Management.
The article, datelined New York, cited four unnamed sources “familiar with the matter.”
In Detroit, Compuware spokesman Eric Kushner said: “I cannot offer any additional comment beyond that which we shared in our Jan. 25 statement.”
On Jan. 25, Compuware spurned the Elliott offer, saying it “significantly undervalues” the company. Compuware also attempted to mollify shareholders by pledging to slash $60 million over three years from expenses, to begin paying a quarterly dividend of 12.5 cents per share, and to spin out its Covisint secure communication portal for the benefit of shareholders.
Elliott filed a report with the United States Securities and Exchange Commission Tuesday that it had signed a nondisclosure agreement with Compuware, allowing it to study non-public information that could lead to a higher offer.
Thursday, Compuware stock closed up 18 cents, or 1.6 percent, at $11.81 a share, on a day when tech stocks overall plunged more than 1 percent.