Shares of Epicor Software Corp., an Irvine-based maker of business software, soared Wednesday after hedge fund Elliott Associates LP made an unsolicited bid to buy the company, which has been struggling of late.
Investors took to the idea and sent shares up more than 13% at the close of New York trading on a market value of about $530 million.
New York-based Elliott Associates offered $9.50 per outstanding share, or about $566 million for Epicor.
Elliott is one of Epicor’s biggest shareholders, with a little more than a 10% stake.
The offer would amount to a 20% premium on the stock, which closed Tuesday at about $8.
Elliott had been agitating for Epicor’s board to improve shareholder value for some time.
“We have made numerous requests to the company’s executives and board of directors asking that the company commence a process to explore strategic alternatives,” Elliott said in a letter to Epicor’s board. “Unfortunately, each of these requests has been denied.”
Elliott said the offer could “potentially increase” if it is provided due diligence.
Epicor, which has seen its shares fall by about 40% in the past year, is set to “carefully consider and review Elliott Associates’ proposal and will respond in due course,” the company said in a statement.
