NEW YORK (TheStreet) -- Shares of EPIQ Systems Inc. (EPIQ) are higher by 7.23% to $18.54 on heavy volume in early afternoon trading on Monday, after the company announced it refused a $20 per share takeover offer from its shareholder P2 Capital Partners LLC, the Kansas City Star reports.
EPIQ Systems, a global provider of managed technology for the legal profession, said its board "unanimously determined that the P2 proposal does not unlock the company's long term value, is inadequate from a financial point of view, and is not in the best interest of the company and its shareholders."
EPIQ said it will continue to explore strategic alternatives and determine what course of action is in the company and its shareholders' best interest, but also cautioned that the board's review may not result in an acquisition, divestiture, going private, or recapitalization transaction.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The hedge fund P2 Capital increased its stake in EPIQ Systems to 16.9% from almost 4.9% after its $1.1 billion offer to take the company private was declined, making it the company's largest shareholder, the KCS added.
Separately, TheStreet Ratings team rates EPIQ SYSTEMS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EPIQ SYSTEMS INC (EPIQ) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."