In turn, bmc responded by issuing a press release and adopting a poison pill1 shortly after, elliott. Jan 28, 20 activist shareholder elliott associates lp pressed bmc to consider a sale last year, unsettling customers and making it harder for the company to clinch deals, bmc chief executive officer bob. New york reuters corvex management lp, which was founded by one of activist investor carl icahn s longtime associates, has taken a stake in technology company bmc software inc bmc. During his tenure, he oversaw the communications strategy regarding a major activist shareholder that resulted in bmc going private last year. The elliott corporation was founded by paul singer, who is ceo of the management company, based in new york city. Jul 31, 2014 stouse is leaving his second tour at bmc software after more than two years on the job. Name of registrant as specified in its charter na name of persons filing proxy statement, if other than the registrant payment of filing fee check the appropriate box. Corvex management lp, which was founded by one of activist investor carl icahns longtime associates, has taken a stake in technology company bmc software inc. The main premise is that activist investors cannot force their ideas on companies. The elliott corporation was founded by paul singer, who is ceo of the management company. If you are interested in discussing your rights as an bmc stockholder, with no obligation or cost to you, please contact u. Houstonbased bmc has been under pressure from shareholder elliott management corp.
A year after a leveraged buyout that activist supported, mr. Hedge fund presentations by worlds renowned activist. May 06, 20 elliott is a shareholder in business software company attachmate, alongside golden gate, thoma bravo, and francisco partners. In turn, bmc responded by issuing a press release and adopting a poison pill. After a yearlong campaign by an activist shareholder, bmc. The struggling it services and cloud computing company is. Shareholder right to appraised fair value now considered form of activist investing. Bmc software has had a bumpy year as an activist shareholder has tried to take the company private.
May 06, 20 business software maker bmc software inc, whose anemic growth has been a source of frustration for its largest shareholder, said it would be taken private by a group led by bain capital and golden. Get breaking news and analysis on bmc software, inc. Singer began a proxy fight for board seats at bmc software, inc. Jan 28, 2016 the activist is an accelerant, especially on issues like replacing the ceo. Provides software for managing operations, sales, planning, and other enterprisewide functions. Stouse is leaving his second tour at bmc software after more than two years on the job. In may last year the activist fund presented its case for why the software company should be sold. Sep 01, 2016 fletcher said this allowed bmc to leave the activist shareholder saga behind.
Bmc stock, price quote and chart, trading and investing tools. Every reader should familiarize themselves with the move elliott management tried with systems software provider bmc software. Elliott is a shareholder in business software company attachmate, alongside golden gate, thoma bravo, and francisco partners. These letters are a great read for any aspiring investor because they lay out the thought process of the worlds most renowned investors. It is also one of the largest activist funds in the world it is the management affiliate of american hedge funds elliott associates l. Eric deritis, who was hired last december, will transition into stouses role that included communications. The company provides information technology it management solutions for large, midsized and small enterprises and public sector organizations.
May 06, 20 houstonbased bmc has been under pressure from shareholder elliott management corp. In january 2012, elliott management became the biggest shareholder in bmc with a 9. Bmc software continues to evolve after 36year ride. Activist shareholder elliott associates lp pressed bmc to consider a sale last year, unsettling customers and making it harder for the company to. He is responsible for worldwide sales for the companys enterprise solutions organization business unit. Bmc software continues to evolve after 36year ride houston. Bmc software appoints peter leav as president and ceo.
Delivering business service management, bmc solutions span enterprise systems, applications, databases and. Directors prepare for shareholder activism corporate. It is also one of the largest activist funds in the world. He stated that there is an opportunity to enhance shareholder value by. Jul 01, 2015 to be your own activist, management and the board should be open to ideas, encourage debate, challenge the status quo, seek outside opinions, and most of all be proactive. Bmc offers saasbased and onpremise software and services in areas including cloud computing, it service management, automation, it operations, and mainframe. Bmc had expanded the number of directors on its board of directors. It is remarkable that activist investors can achieve the success they do, given they are limited to external information and sources. Elliott management corporation is an american investment management firm. Directors prepare for shareholder activism corporate governance. Merion has filed at least 10 appraisal actions in delaware, including two challenging the acquisitions of and bmc software.
The software maker had begun soliciting bids after activist investor paul singers elliott management corp. Bmc to manage their business services and applications across distributed, mainframe, virtual and cloud environments. Business software maker bmc software inc, whose anemic growth has been a source of frustration for its largest shareholder, said it would be taken private by a. May 06, 20 the activist hedge fund last year revealed that it was a major shareholder eventually taking a 9. I doubt that bmc would have gone private if the activist investor hadnt gotten involved, fletcher said.
To be your own activist, management and the board should be open to ideas, encourage debate, challenge the status quo, seek outside opinions, and most of all be proactive. Delivering business service management, bmc solutions span enterprise systems, applications, databases and service management. Fletcher said this allowed bmc to leave the activist shareholder saga behind. May 15, 2012 corvex management lp, which was founded by one of activist investor carl icahns longtime associates, has taken a stake in technology company bmc software inc, according to a federal filing. Thats why more than 20,000 it organizations from the global 100 to the smallest businesses in over 120 countries rely on bmc software nasdaq. Soft shareholder activism doron levit september 10, 2018 this paper studies communications between investors and rms as a form of corporate governance. Bmc agrees to nominate two elliott board members marketwatch. For example, in may 2012, the activist hedge fund elliott management wrote a letter to board members of bmc software. Bmc backs 2 of 5 nominees originally proposed by hedge fund elliott agrees to standstill restrictions hedge fund had been pushing bmc to sell itself. Activist shareholder letters are letters written by activist investors and sent to the company, often demanding a certain change to maximize shareholder value. Bmc software ceo opens up about living with activist elliott. The activist hedge fund last year revealed that it was a major shareholder eventually taking a 9.
Bmc, which makes software for storage management, database performance and data recovery, was under pressure to sell itself earlier this year from activist shareholder elliott management. The activist is an accelerant, especially on issues like replacing the ceo. It has focused on several tech companies, like bmc software, but also has investments in other sectors. Does the activist push companies to distribute capital in a harmful way. Directors prepare for shareholder activism by thinking more like activists themselves. All of this is driven by the fact that hedge funds are looking for new business outside the mainstream activist sphere. It is the management affiliate of american hedge funds flagship elliott associates l. Fee computed on table below per exchange act rules 14a6i1 and 011. Its net income almost doubled over the same time frame.
Bmc software bmc elliott management increased its holding to,692,000 shares 9. Bmc is due to announce firstquarter earnings on may 7. It is remarkable that activist investors can achieve the success they do, given. In 2012, it was confronted by activist shareholders as elliott associates and elliott international acquired more than 5 percent of bmcs common stock. The influence of activist investors on shareholder returns. Prnewswire bmc, a kkr portfolio company and a global leader in it solutions for the digital enterprise, today announced the signing of a definitive. Bmc software draws another activist investor reuters. Provides software for managing operations, sales, planning, and other enterprisewide. Bmc stock was originally traded on nasdaq under the symbol bmcs and on the new york stock exchange with symbol bmc, but the. Jason began his bmc career first as a partner in his native new zealand, and then joined the company in australia in 1998. Jason andrew is senior vice president for eso global sales for bmc software, inc. Bmc deal shows how activist playbook brings profit.
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