Report: Compuware Talks Buyout With Private-Equity Firms
After rejecting a $2.3 billion buyout from hedge fund Elliott Management, business software maker Compuware (NASDAQ:CPWR) is reportedly talking to several private-equity firms about a possible takeover.
According to Reuters, the company has explored a potential deal with a number of large private-equity firms, including Blackstone Group (NYSE:BX) and TPG Capital.
The report sent Compuware’s stock surging nearly 8% and caused it to hit circuit breakers before backing off. In recent trading Compuware was up just 2.06% to $11.87.
Last month the Detroit-based technology company turned down an $11-a-share buyout offer from Elliott Management.
Compuware said the bid from the New York hedge fund, its second-largest shareholder, was too low and said it would instead focus on spinning off a non-core business.
A spokesperson from Compuware said: “At this time we are not offering any additional comment beyond that expressed in our January 25 statement," which said the company’s board “will carefully review and evaluate any credible offer it receives.”
Compuware employs more than 4,500 people and the software company generated $1 billion in sales in the 12 months ended March 2012.