Micro Focus soars after receiving approach

26th Apr 2011 11:23

Micro Focus International, the software firm which recently announced two profit warnings, a share buy-back, and the departure of its chief executive, has confirmed speculation of a potential sale.The group revealed on Tuesday that it has received a "very preliminary, non-binding approach in relation to a possible offer" and is said to be considering its response. The announcement sent shares up by over a tenth.At Thursday's closing price, the stock had fallen around 20% since mid-February when the firm announced its second profit warnings in six months, saying that underlying earnings for the year will be 10% lower than previous guidance.As a result of the approach, Micro Focus is now suspending its buy-back programme announced on 28 March (to buy back as many as 20.5m of its own shares) until further notice."There is no certainty that any formal offer for the company will be forthcoming nor as to the price at which any offer might be made," the statement said.---bc