New York-based hedge fund Elliott Associates LP on Friday pulled out of its hostile bid to buy Irvine’s Epicor Software Corp.
Investors sent Epicor’s shares down nearly 20% on a recent market value of about $175 million.
Elliott’s withdrawal of its offer ends a two-month standoff between the company and Epicor’s board, which has made four separate recommendations to shareholders not to the buyout offer.
Elliott first sent an unsolicited bid to Epicor’s board in October.
Epicor rebuffed several attempts by Elliott to engage in talks.
“We are astounded and disappointed by the board’s decision,” Elliott said in a letter to Epicor’s directors. “Epicor’s shares have plummeted 70% to date this year and your annual guidance and visibility into the future is weak. In light of these facts and the incredible market uncertainty, we would have anticipated that our all-cash, significant premium offer would at least have merited a meeting or discussion with us.”
On Wednesday Elliott extended its offer until Dec. 3 of $7.50 a share, which values the deal at about $450 million.
Its previous offer expired Tuesday.
Elliott was looking to pay about $395 million for the rest of the company’s shares it doesn’t already own.
Some Epicor shareholders were on board with the idea.
In its letter, Elliott thanked the “numerous shareholders who supported our offer.”
Some 24% of Epicor’s shareholders sold roughly 14.4 million of the company’s outstanding shares to Elliott.
Elliott owns 12.5% of the company’s shares, a figure that includes some $28.7 million in debt that converts to Epicor stock.
The hedge fund also said “several other potential buyers have contacted the board and they have informed us that they, too, have been entirely rebuffed.”
