Coming off two good earnings reports, the Compuware Company announced today it rejected a takeover bid by a hedge fund company.
More from JC Rendl of the Detroit Free Press:
The $2.3 billion, $11-per-share bid by Elliott Management “significantly undervalues the company and is not in the best interest of the shareholders,” the Detroit-based software company said in a statement.
The hedge fund made the unsolicited offer Dec. 17. Compuware’s 11-member board had its regular meeting on Thursday and the decision to reject the bid was unanimous, the company said.
The New York Times Deal Book blog says Elliott Management might not go away.
The decision by Compuware sets up a potential clash with Elliott, which has managed to score some big wins in its battles with technology companies. It bid for Novell, leading the software maker to sell itself to Attachmate for $2.2 billion.
People close to Elliott have argued that the hedge fund was fully prepared to pay the $2.3 billion it had offered for Compuware.Compuware.
The company's headquarters is based in the One Campus Martius building in downtown Detroit.