Software company Compuware has rejected Elliott Management's $2.3 billion offer, calling it too low.
Elliott had offered $11 per share for the company last month. But while the stock has yet to reach that point, even after the offer, Compuware said a sale at that level would offer too little value for shareholders.
"We believe that selling the company at $11 per share does not take into account our progress returning the business to profitable growth and our future prospects," CEO Bob Paul said.
Elliott owns 8% of Compuware and is said to hope to attract a private equity bidder for the company.
"This is a good outcome," Elliott's Jesse Cohn said. "Compuware has granted our request for access to diligence to confirm an offer for the company. We will immediately reach out to negotiate an appropriate N.D.A. and look forward to moving quickly to engage in diligence with the help of our legal and financial advisers. We remain very interested in the company."