Elliott Management

2019

Purchase of the developer of the Barnes & Noble eReaders for $683 million

On June 7, 2019 it was announced sale of the developer of the Barnes & Noble eReaders to a hedge fund of Elliott Management for $683 million. Will pay shareholders of the sold company $6.5 for each security belonging to them that is 42% more than a quotation rate to closing of the exchange on June 5 — a day before emergence in media of rumors about the preparing transaction with Elliott Management. Read more here.

Purchase of 1% of stocks of SAP worth 1.2 billion euros

On April 24, 2019 the American hedge fund of Elliott Management disclosed information on ownership about 1% of stocks of SAP. The cost of a share is estimated at 1.2 billion euros. After publication of these data of quotation of the German producer of the corporate software grew to record level. Read more here.

2016: Purchase of software business of Dell

On June 20, 2016 it became known of sale of software business of Dell. Thus, the American corporation continued to sell assets and to change strategy, focusing on merger of producer of disk storages EMC, the The Wall Street Journal newspaper tells.

The division of Dell Software Group which is engaged in development and promotion of the software in the field of analytics, management of databases, data protection, access control and monitoring of performance is bought by private investment firm Francisco Partners and a hedge fund of Elliott Management. The cost of the transaction is officially not sounded. According to Reuters agency, it is more than about $2 billion.

Dell sells software business for $2 billion

Quest Software affiliated firms (the developer of tools for management of IT systems of the enterprises) and SonicWall (provider of solutions of intellectual network security and data protection) for which the corporation paid in total $3.6 billion in due time among other things treat software assets which are sold by Dell.

Quest Software and SonicWall offer crucial software to huge and loyal base more than 180 thousand clients. We see great opportunities in creation of excellent technologies and a product portfolio — said the CEO of Francisco Partners Dipanjan Deb.

As specifies Reuters, decided to sell to Dell almost all software business, having retained only the developer of cloud computing for integration of the software tools Boomi Dell to Sell Software Unit to Francisco Partners and Elliott Management^[1].

2009: The agreement on non-interference with Epicor

On February 26, 2009 it became known that the Epicor company and a hedge fund of Elliot Associates reached the agreement which weakened tension between two companies proceeding the most part of last year. By this time the hedge fund owns, according to some information, from  11% to 14% of stocks of Epicor and debt obligations for the amount of 28 million dollars. According to the new agreement (the so-called "agreement on non-interference"), Elliot Associates is authorized to acquire up to 15% of shares of Epicor company and also debt obligations for total  amount to 100 million dollars. After that the company within a year  undertakes  not to make attempts to purchase Epicor. Let's remind that the market value  of Epicor is estimated now approximately at 165 million dollars.

Part of the signed agreement is  expansion of structure of Board of Directors Epicor from 5 to 7 people.  Major shareholders of Epicor Richard Pikap became two new directors (Richard H. Pickup) and John Dillon (John M. Dillon). As reported, they  have no relation to Elliot Associates.  Most likely, the investment fund expects  to provide thereby a greater influence on the president and the executive management of Epicor and to force the company to consider more actively the interests of the major shareholders.

 According to Jess Kohn (Jesse Cohn) managing Elliot Associates share portfolio,  the hedge fund is one of the largest shareholders and is interested in Epicor value increase. Two new shareholders as a part of Board of Directors will allow to adjust constructive dialogue with company management of Epicor.

The representative of Epicor called  input of two new shareholders in Board of Directors not imposed, and "mutually approved" the solution.

 According to George Claus (George Klaus), the chairman of the board of directors and CEO Epicor, the agreements reached with Elliot Associates  are equitable to the interests of the company and its shareholders.  Epicor will also adhere further to the strategic plans which, according to it, will lead to increase in the stock price.

2008: An attack to Epicor with the offer on purchase

At the beginning of November, 2008 it became known that the hedge fund of Elliott Associates made the proposal on purchase of a controlling stake of Epicor company again, having lowered at the same time cost from 9.50 to 7.50 dollars for the stock.

Shortly before this Elliott Associates expressed the intention to acquire all shares of the company which are in circulation at the price of 9.50 dollars for an action that is about 20% higher than their current market value. Transaction amount at the same time would be 565.9 million dollars. At that time the Board of Directors of Epicor rejected this offer of Elliott Associates on sale to the company.

However in Elliott Associates did not refuse the intentions to purchase Epicor. At the same time the investment company reduced the offer from 9.50 to 7.50 dollars for the stock. In this case the cost of the transaction would be 446.8 million dollars. The offer remains in force in the forenoon on November 17 the current year.

Reduction in cost of Elliott Associates explains, on the one hand, with uncertainty of an economic situation and, respectively, lack of guarantees of observance of the planned diagram of release of releases of software products in the next two years. Besides, as it is reported to the companies are disappointed with the relation of the developer to the transaction and categorical failure from offered advantageous conditions in the letter sent Elliott Associates to Epicor corporation (especially in the light of the last financial statement of Epicor which confirmed decline in income from sale of licenses and reduction in the level of annual forecasts for income). At the same time, as it is reported, failure of the company to provide to the potential buyer its statuses of data, necessary for the analysis, minimizes a possibility of a friendly takeover. Nevertheless, according to representatives of Elliott Associates if Epicor nevertheless agrees to open the data interesting them, then final transaction amount can be increased.

Epicor rejected the arrived offer again and repeated the explanation which is put forward at initial failure.

Hedge fund of Elliott Associates, having been refused on the direct offer on Epicor purchase,  began to acquire the shares of the company which are in free circulation.  For several weeks it acquired 340 thousand shares of Epicor company at the price from 3.31 up to 4.75 dollars for the stock. As a result of Elliot became the owner  about 6.4 million stocks of Epicor company (a little more than 10% of the total cost of the company).

However owners of Epicor try not to allow acquisitions by third-party investors of a controlling stake and also actively acquire shares of the company. George Klaus, the chairman of the board of directors of Epicor, acquired 100 thousand shares at the price from 3.10 up to 3.50 dollars for the stock therefore it is the owner of 2.4 million actions. James Richardson and Michael Kelly, board members of Epicor, acquired on 10 thousand shares of the company approximately at the price of 3 dollars for an action  therefore Mr. Richardson owns 30 thousand actions, and Mr. Kelly of nearly 50 thousand actions.

At this time the Epicor company was also forced to save balance in a difficult economic situation.

1977: Paul Singer starts Elliott Associates for $1.3 million a family and friends

In January, 1977 Paul Singer created Elliott Associates, having started with the amount of $1.3 million provided by family and friends. Elliott is a middle name of Paul Singer.

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