Software Stake Bought by Hedge Fund Firm
Thursday, August 21, 2008 : PermalinkWest Palm Beach (HedgeCo.net) – Elliott Associates, a New York hedge fund firm, has bought a 9.9% stake in Epicor Software Corp. and is inquiring about possible strategic alternatives for the company, Markets Media Online reports.
In a filing made with the Securities and Exchange Commission, Elliott now owns nearly 6 million shares of Epicor, just shy of 10% of the company. The firm has been steadily buying up shares since June but made particularly large acquisitions during the last month. It has also acquired more than $18 million worth of convertible bonds for Epicor over the past week.
Breeden Capital Management, another hedge fund firm, also disclosed a 5.25% stake in medical equipment maker Hill-Rom. Former Securities and Exchange Commission Chairman Richard Breeden founded Breeden Capital, which uses an activist strategy to profit from companies that improve corporate governance. The firm’s top holdings include H&R Block, medical equipment sterilization company Steris and diamond retailer Zales.
Elliott also said it has made inquiries as to whether Epicor has considered exploring strategic alternatives. Such language is often a harbinger for an investor pushing for the sale of a company. Elliott earlier this year put pressure on MSC Software to put itself up for sale.
Elliott Associates is known for its activism. In the recent past, it has launched a hostile takeover bid for IT company Packateer, pressed retailer Pier 1 to cut costs and helped Metrologic Instruments founder C. Harry Knowles take his company private. Metrologic has since been taken over by manufacturing giant Honeywell.
Alex Akesson
Email: alex@hedgeco.net
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