BMC Software Surges after Elliott Acquired over 5% of Shares

Shares of BMC Software

are seeing much strength during Monday's trading session after Elliott International notified BMC Software that it had acquired beneficial ownership of more than 5% of BMC's common stock and would soon be filing a Schedule 13D with the Securities and Exchange Commission. 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.” After the acquisition by Elliott, MBC Software announced that its Board of Directors has unanimously adopted a stockholder rights plan. The Rights Plan is designed to ensure that all stockholders of the Company receive fair and equal treatment in the event that an unsolicited attempt is made to acquire the Company. Currently, shares of BMC Software are trading about 9% higher at $44.20 per share.