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indirectly owned by funds managed or advised by private equity group Vista Equity Partners, CVC and ValueAct have withdrawn from the hunt.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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
