Saturday, November 22, 2008

Epicor update: Elliott decides to wait for after-Christmas sale

Apparently with EPIC stock hovering around $3, the private equity group hovering over the battered company has decided that its offer of $7.50, down from $9.50, might be a little rich.

Managing Automation reports that with the broader markets in the toilet, Elliott was able to pull out thanks to an "out" in their offer tied to any of the major indices going losing 10%. As anyone who's had the courage to open their 401(k) statements lately knows, that hasn't been a problem.

But speculation is that they'll be back in January, when proxy season heats up, and they can nominate new directors who might be inclined to consider a new offer. Should we start a pool here to predict the new offer? Betting closes January 15. And if Elliott asks, I'd be honored to serve as a director myself :)

Disclosure: I am the CEO of a competitor to Epicor, whose open source ERP solution is doing quite well.

Wednesday, November 05, 2008

From bad to worse for Epicor

A couple of updates from Managing Automation on the Elliott Associates private equity takeover bid for Epicor:

First, Elliott lowered its bid by $2/share. That's almost $120MM that EPIC shareholders won't see.

Second, MA's source "revealed that at least two other potential buyers have privately expressed interest in Epicor, and said both are software companies in the same Tier 2 space as Epicor and similar in size to the ERP vendor."

Hmm.... anyone want to speculate? Infor is too big, QAD is too small ... but Consona (M2M, Intuitive, etc.) might be just right. Who's the other one? Epicor has sales of $485MM (ttm).