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BMC Software (BMC) Sale Process Might Finally be Put in Motion (SAP) (ORCL)

March 21, 2013 2:15 PM EDT Send to a Friend
BMC Software (Nasdaq: BMC) pared most of the gains seen just ahead of midday Thursday following chatter that a private equity consortium led by KKR & Co. (NYSE: KKR) and TPG Capital might make a bid for the company.

Reuters reports that a deal topping $6 billion might be submitted by the PE firms.

In addition to KKR and TPG, a group containing Golden Gate Capital and Bain Capital was also formed, with Thoma Bravo in a third consortium.

Bidding is said to be past the first rounds with management presentations underway. Final bids might be submitted within weeks, Reuters noted.

Pressure for the company has been evident, most notably from hedge fun Elliot Management, which last reported a 9.6 percent stake in BMC. Elliot was pushing for a sale last year, but nothing come of it.

In January, BMC cut its outlook for fiscal 2013 following lower-than-expected Q3 results in several key segments, including enterprise services management. BMC generally competes with names like SAP AG (NYSE: SAP), Oracle (Nasdaq: ORCL), Compuware (Nasdaq: CPWR), and CA, Inc. (Nasdaq: CA).

It's not clear what the specific bid would be, though one analyst from Mizuho Securities said $45 to $47 might be a safe range.

Shares of BMC are up 3.4 percent, after spiking nearly 9 percent on the news.




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