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indirectly owned by funds managed or advised by private equity group Vista Equity Partners, CVC and ValueAct have withdrawn from the hunt.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.
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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
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