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WEST PALM BEACH - Elliott Investment Management L.P., managing funds worth over $1.5 billion in Aspen Technology, Inc. (NASDAQ: NASDAQ:AZPN), today expressed its opposition to the tender offer made by Emerson Electric Co. (NYSE: NYSE:EMR) to acquire the remaining shares of AspenTech for $265.00 per share. Elliott, being the largest minority investor in AspenTech, has stated it finds the offer from Emerson to be opportunistic and significantly undervaluing the company. The investment firm has declared it will not tender its shares at the proposed price. The stock is currently trading near its 52-week high of $265.67, with a market capitalization of $16.81 billion.
The disagreement arises over the value of AspenTech, a provider of software and services for the process industries. Elliott’s stance indicates a belief that the current offer does not reflect the true worth of the company. This could suggest that Elliott sees potential for AspenTech’s value to increase or that it expects competing offers to emerge. According to InvestingPro, AspenTech boasts a perfect Piotroski Score of 9, indicating strong financial health, while demonstrating impressive momentum with a 28.29% price return over the past six months. Subscribers to InvestingPro have access to 15+ additional exclusive insights about AZPN’s valuation and growth prospects.
Elliott Investment Management, with approximately $69.7 billion in assets under management as of June 30, 2024, is one of the oldest funds under continuous management. Its investors include a diverse group ranging from pension plans and sovereign wealth funds to high net worth individuals.
The refusal to tender shares by Elliott could potentially complicate Emerson’s efforts to consolidate its ownership of AspenTech. The outcome of this tender offer may have significant implications for AspenTech’s shareholders and could influence the company’s future strategic direction.
The information for this article is based on a press release statement from Elliott Investment Management L.P.
In other recent news, Emerson Electric is set to acquire the remaining shares of Aspen Technology in a deal valued at $7.2 billion. The purchase price of $265 per share reflects a significant premium, according to analysts at Loop Capital, who recently downgraded Aspen Technology from Buy to Hold. They assert that the current trading activity is driven more by arbitrage opportunities rather than the company’s business fundamentals, given that Emerson Electric already held a majority stake in Aspen Technology.
In other developments, Aspen Technology shareholders have elected all eight director nominees to the board and ratified the appointment of KPMG LLP as the company’s independent public accounting firm for the fiscal year 2025. Additionally, the company’s executive compensation strategy received advisory approval.
Meanwhile, Baird, a financial services firm, increased its price target for Aspen Technology to $275 from $250, maintaining an Outperform rating on the company’s stock. The adjustment comes in the wake of Emerson Electric’s proposed acquisition, with Baird analysts suggesting a higher earnings multiple based on Aspen Technology’s historical valuation range, positive business developments, and an optimistic outlook.
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