This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Covisint to Rally Support for IPO

"Since Covisint's assets are so different, it may help better facilitate another transaction with that asset off the books," the source said.

Compuware hinted that it might field better offers after rejecting on Jan. 25 an $11 per share, or $2.3 billion, offer from Paul Singer's Elliot Management, noting that the bid undervalued the company.

The hedge fund remains under a standstill agreement with Compuware until Sunday, Sept. 15.

Compuware also announced in its Jan. 15 statement that it had enlisted Goldman Sachs & Co. and Allen & Co. as financial advisors, while retaining Skadden, Arps, Slate, Meagher and Flom LLP as legal counsel to assist with future developments.

Though it may not be clear where Elliot's bid presently stands, another potential acquirer for Compuware is BMC Software (BMC), according to the industry source.

"BMC makes a good strategic fit with Compuware," the source said. "The mainframe industry has been undergoing consolidation and I do think there's more consolidation that makes sense."

Not only do the two companies have minimal product overlap, but Elliot is also a 9% holder of both Compuware and BMC, the source added.

"There's certainly some interests aligned there to forge a combination of the two," the industry source said.

-- Written by Sarah Pringle in New York

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BMC $0.00 0.00%
CPWR $10.35 0.10%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs