November 14, 2013 / 3:05 PM / in 4 years

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.

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