In reaction to Compuware Corporation’s poor preliminary 4Q13 earnings, Sandell Asset Management’s CEO Thomas E. Sandell sent the following letter to Compuware’s CEO and Board of Directors: " Through both public and private correspondence with you and the Board of Directors over the past six months, we have identified our main concerns with the management of Compuware – namely, the tendency to over-promise and under-deliver, and poor execution. The Q4 earnings preannouncement on April 3rd only further proves that our concerns are justified. You cited various reasons for the poor Q4 performance, including a weaker IT spending environment, delayed purchasing decisions by European clients and various 'challenges and distractions'. We suggest that the real reason for the poor Q4 performance is management's inability to execute operationally...In our most recent private communication on March 25th, we demanded that the company conduct a full auction process, as opposed to only fielding incoming requests. We reiterate this view. Further, we understand that you may have rebuffed a serious bidder, based on your inflated view of the company's standalone value. Again, we urge you to conduct a full and robust auction and consummate a sale at the best available price as soon as possible."
- Investment & Company Information
- Compuware Corporation