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Monday, December 17, 2012

Elliott Management offers to purchase Compuware for $2.3 bln, (NASDAQ: BMC)

Activist hedge fund Elliott Management Corp offered to purchase business software maker Compuware Corp for $2.3 billion, seven months after it pushed for a sale of rival BMC Software Inc.Elliott's $11 per share offer represents a 15.4 percent premium to Compuware's Friday close on the Nasdaq. Compuware's shares rose to just below the offer price."We believe in the quality of Compuware's assets - however, its execution, profitability and growth have meaningfully underperformed," Elliott said in a letter to Compuware's board.Elliott said on Monday it controls 8 percent of Compuware, which makes software to manage large computer networks.

BMC Software, Inc. (BMC) is a software company. The Company provides information technology (IT) management solutions for large, mid-sized and small enterprises and public sector organizations around the world. Shares of BMC traded higher by 1.82% or $0.73/share to $40.91. In the past year, the shares have traded as low as $31.62 and as high as $45.70. On average, 1370510 shares of BMC exchange hands on a given day and today's volume is recorded at 818206.