Micro Focus confirms approaches, shares soar

20th May 2011 13:07

Shares in Micro Focus were up by more than 8% after the software company confirmed that it has received approaches from investment groups Advent Capital and Bain Capital "which it has chosen to explore."The announcement came after speculation of an approach from Advent had pushed up Micro Focus's share price and the stock climbed higher still after the statement was released. The Financial Times reported yesterday that Advent has emerged as a challenger to Bain, which made an approach to MicroFocus in April."At this stage there can be no certainty that any offer for the Company will be forthcoming nor as to the price at which any offer might be made," MicroFocus said.The company confirmed last month that it had received a "very preliminary, non-binding approach in relation to a possible offer."The possible takeover battle comes amid weakness in the share price of MicroFocus, which announced a second profit warning in six months in February. The company has been hit by large deals not coming through when expected or being lost altogether. Micro Focus's clients include the supermarket Tesco and the defence giant QinetiQ.Micro Focus last month said chief executive Nigel Clifford is leaving the software group after less than a year in the job.---RG