It looks like there will not be a bidding war for financial software developer Misys as CVC Capital Partners and ValueAct Capital Master Fund, which had been considering throwing their hat into the ring, have confirmed they will not be making a bid.
A joint bid by the pair has been under consideration since the beginning of March, but with the Misys board giving the thumbs-up to the bid from Magic Bidco, an investment vehicle indirectly owned by funds managed or advised by private equity group Vista Equity Partners, CVC and ValueAct have withdrawn from the hunt.
Many observers had speculated that ValueAct Capital, Misys's major shareholder, only entered the fray to force the other interested parties - Swiss software developer Temenos and Vista Equity - to offer cash for Misys shares, instead of the share offers originally on the table.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
With Vista coming through with a 350p a share cash offer, there was less pressure on ValueAct to hang in there to ensure a decent price for the shares. Swiss firm Temenos dropped out of the running on March 12th.
JH
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
