ValueAct Capital acquires Misys stake
26 October 2006 | 9400 views | 0
Shares in Misys have firmed up on news that private equity group ValueAct Capital, the former employer of its incoming CEO Mike Lawrie, has acquired a 4.4% stake in the UK business.
Misys shares rose 2.4%, or 4.75 pence, to 205 pence yesterday and the stock continued to inch up this morning on speculation that ValueAct's acquisition of the 4.4% stake could be a prelude to a bid for the company.
Furthermore UBS has maintained its "buy" recommendation for Misys on the back of ValueAct's acquisition.
In a research note the Swiss broker says the equity firm has a "track record of activism" and pointed out ValueAct's acquisition of 12% in Acxiom (ACXM) before it made a hostile all-cash US$23 per share offer for the company, which ultimately failed. UBS also noted ValueAct's acquisition of a six per cent stake in MSC Software followed by a hostile $9 per share bid.