Elliott Associates L.P. and its affiliates Elliott International L.P., and Elliott International Capital Advisors Inc (EICA) collectively known as Elliott increased its stake in Compuware Corporation (NASDAQ:CPWR) to 9.6% based on its latest 13D filing with the Securities and Exchange Commission (SEC).
During the previous quarter, Elliott owned 18,670,000 shares of Compuware Corporation (NASDAQ:CPWR). The hedge fund recently added 2,330,000 shares bringing the total number of shares it owned in the company to 21 million.
Based on the regulatory filing, Elliott individually beneficially owns 7,350,093 shares or 3.4% while Elliott International and EICA beneficially own an aggregate of 13,649,907 shares or 6.3% of all the outstanding shares of the common stock of Compuware Corporation (NASDAQ:CPWR).
Elliott purchased its additional stake in the company from January 14 to February 14 at price range of $9.77 to $10.75 per share.
Elliott offered to buy Compuware for $2.3 billion
In December last year, Elliott offered to acquire Compuware Corporation (NASDAQ:CPWR) for $11.00 per share or $2.3 billion. The hedge fund’s portfolio manager, Jesse Cohn wrote a letter to the board of directors of the company and stated that Elliott is “uniquely situated to deliver maximum value” to shareholders given its significant experience in the software sector and its deep public diligence to Compuware.
He also pointed out that the company underperformed the NASDAQ Index by 6% and the S&P 500 by 34% over the past two year. According to him, Elliott’s proposal is subject to due diligence and holds in case it will be able to obtain reasonable financing.
Compuware’s BOD rejected Elliott’s offer
The board of directors of Compuware Corporation (NASDAQ:CPWR) rejected the proposal of Elliott to acquire the company for $2.3 billion citing that it significantly undervalues the company and it is not in the best interest of shareholders.
According to the board, the main priority of the company is to increase its profitability, build its momentum in transition to higher-growth businesses, and return capital to shareholders. Back then,
Bob Paul, CEO of Compuware Corporation (NASDAQ:CPWR) said, “We believe that selling the company at $11.00 per share does not take into account our progress returning the business to profitable growth and our future prospects.”
The shares of Compuware Corporation (NASDAQ:CPWR) are currently trading around $10.53 per share.
