BMC Software (BMC) On Watch Following Large Hedge Fund Stake, Poision Pill Adoption

May 14, 2012 7:50 AM EDT
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BMC Software Inc. (NYSE: BMC) is bid slightly higher after the company disclosed that hedge fund Elliott Associates has acquired a more than 5% stake and the company adopted a poison pill to thwart any unwanted takeover advances.

Shares were last bid at $40.75, fractionally above Friday's close of $40.40.

BMC Software said that its Board has considered Elliott's proposal that the Board form a special committee to pursue a sale of the Company and unanimously determined that such proposal is not in the best interests of the stockholders of the Company and that now is not the right time to pursue such a sale.

Bob Beauchamp, BMC's chairman and chief executive officer, said "As a public company, we are always open to any alternative that fully reflects the value and prospects of the Company. We do not believe the Elliott proposal is in the best interests of our stockholders."

Elliott Associates is expected to file a 13D with the SEC soon.

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