Dec. 17 (Bloomberg) -- Elliott Management Corp., which owns 8 percent of Compuware Corp, offered to acquire the Detroit-based software company for $2.3 billion.
The bid of $11-a-share is a 15 percent premium over the company’s closing price of $9.53 on Dec. 14. Elliott is “confident” that it can obtain financing for the deal, the New York-based hedge fund said today in a statement.
In a letter to Compuware today, Elliott said the software company’s “execution, profitability and growth have meaningfully underperformed.” Elliott said it is prepared to meet with Compuware immediately to discuss a transaction.
Compuware rose 13 percent to $10.78 at 10:29 a.m. in New York, after earlier advancing as much as 14 percent.
The company provides infrastructure software. Products include mainframe applications, collaboration technology, project management tools, and application performance management services for cloud and mobile applications.