Investor Starboard asks Compuware to consider immediate sale
Nov 14 (Reuters) - Activist investor Starboard Value LP asked business software maker Compuware Corp to consider an immediate sale or implement a new restructuring plan.
Starboard, one of Compuware's largest shareholders with a stake of just under 5 percent, detailed the actions it wants the company to take in the restructuring plan.
Starboard said the plan should include a $450 million tender offer, sale of non-core assets, more cost cuts and a dividend increase. ()
"We believe the length of time that the company has spent exploring strategic alternatives, without any conclusion to the process, has created a significant overhang on the stock price," Starboard said in a letter to Compuware.
Compuware rejected a $2.3 billion offer from New York-based hedge fund Elliott Management Corp in January.
Reuters reported in August that the company had renewed efforts to sell itself.
Shares of the company were up 2.7 percent at $10.80 in morning trade.
- Comedian Joan Rivers 'resting comfortably' at hospital |
- In town halls, U.S. lawmakers hear voter anger over illegal migrants |
- No criminal charges in fatal gun range shooting by nine-year-old girl
- IBM launches Watson system for research, hopes for breakthroughs
- Chinese interceptions of U.S. military planes could intensify due to submarine base