BMC Software draws another activist investor

NEW YORK Tue May 15, 2012 2:44pm EDT

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NEW YORK (Reuters) - Corvex Management LP, which was founded by one of activist investor Carl Icahn's longtime associates, has taken a stake in technology company BMC Software Inc BMC.O, according to a federal filing.

Corvex's position in BMC could add to the pressure the company has been facing from hedge fund Elliott Management, which has launched a proxy battle and is pushing BMC to sell itself.

Shares of BMC were up 2.3 percent at $44.94 on Tuesday afternoon. The company has a market value of $7.4 billion.

Corvex said in a document filed with regulators that it has bought 1,541,993 shares of BMC Software, or nearly 1 percent. It could not be learned whether the hedge fund would agitate for change at the company.

Corvex and BMC declined to comment.

Separately on Tuesday, Elliott said it had nominated a slate of five directors to BMC's board, a day after the company had adopted a shareholder rights plan to help stave off an acquisition.

BMC has twice rejected Elliott's proposals, saying its board has determined that forming a special committee and pursuing a sale at this time is not in the best interest of stockholders.

Corvex's founder, Keith Meister, spent eight years working for Icahn, the well-known corporate raider-turned-activist.

Corvex has been involved in a number of activist campaigns, including the $2.2 billion sale of AboveNet Inc ABVT.N to Zayo Group LLC in March and has taken a stake of roughly 7 percent in Corrections Corporation of America (CXW.N).

(Reporting by Nadia Damouni; Editing by Paritosh Bansal, Gerald E. McCormick and Matthew Lewis)

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