Compuware (NASDAQ:CPWR), a software provider, announced the rejection of a $11-per-share buyout offer from Elliott Management Corporation. The company thinks that there is much more value to be created by remaining independent.
And Wall Street seems to agree. In today’s trading, shares of Compuware are up nearly 6%.
Compuware also plans to take some big moves. It has launched a three-year program to slash at least $60 million in cost, for example, and announced a 50-cent dividend, which translates into a yield of 4.4%.
But the move that may get the most value for Compuware is the plan to spin-off Covisint, which operates a cloud-based platform that helps companies with collaboration. It has over 500 global customers and more than 22 million users.
And the timing for an offering is spot-on. After all, the cloud sector has seen a variety of hot IPOs lately, including ServiceNow (NYSE:NOW) and Workday (NYSE:WDAY).
Covisint filed a registration statement with the SEC back in December, so an IPO could hit the market within the next couple months.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
Comments are currently unavailable. Please check back soon.