Elliott Management offers to buy Compuware

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Associated Press

Posted on December 17, 2012 at 9:03 AM

Updated Monday, Dec 17 at 9:04 AM

NEW YORK (AP) — Elliott Management is offering to buy Compuware for about $2.35 billion.

The New York-based investment firm wants to acquire the software developer for $11 per share. The offer represents a 15 percent premium over Compuware's Friday closing stock price. Compuware shares jumped 14 percent in morning trading.

Elliott currently holds an 8 percent stake in Compuware. It says that while the Detroit-based company has strong assets, its profitability and growth have significantly lagged in recent years.

Elliott says it's confident that it can find financing for such a deal and wants to meet with the company's board as soon as possible.

The offer comes about a month after Compuware founder Peter Karmanos Jr. announced plans to step down as executive chairman next year. He stepped down as CEO in 2011.

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