EXCLUSIVE-Two buyout groups ready BMC Software final bids -sources

Thu Apr 11, 2013 2:45pm EDT

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(Updates share price; adds Elliott background, byline)

By Nadia Damouni

NEW YORK, April 11 (Reuters) - Business technology maker BMC Software Inc is expected to receive final takeover bids on April 22, with potential buyers pared down to two private equity groups, four people close to the matter said on Thursday.

Shares of BMC rose 1.7 percent to $45.50 on Nasdaq.

Buyout firm Thoma Bravo has joined a bidding group led by KKR & Co LP and TPG Capital LP, while Bain Capital LLC and Golden Gate Capital remain teamed up for the auction, the people added. The private equity firms are finalizing financing for their respective bids, said the sources, who asked not to be named because the talks are private.

The Houston, Texas-based software company, which has a $6.5 billion market capitalization, could receive final bids ranging from the mid- to upper $40s per share, one of the sources said.

BMC, which competes with Oracle Corp, SAP AG , CA Inc and Compuware Corp, was under pressure from Paul Singer's activist hedge fund Elliott Management to sell itself last year.

Elliott Management, which owns a 9.6 percent stake in BMC, had signed a standstill agreement with BMC last summer that ended on April 6. The New York-based hedge fund now has the ability to bid for BMC or nominate directors to its board.

KKR, TPG, Golden Gate, Bain, Thoma Bravo and Elliott declined to comment. BMC did not respond to requests for comments.

(Reporting by Nadia Damouni; additional reporting by Soyoung Kim and Greg Roumeliotis; Editing by Gerald E. McCormick and Richard Chang)

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