Micro Focus Shares Rally Amid Speculation of Takeover Approach

Micro Focus International Plc surged the most in 15 months in London trading amid speculation the software company may be a takeover target.

The shares jumped 9.5 percent to 311.6 pence, the biggest gain since November 2009, as of the 4:30 p.m. close in London. That gives the Newbury, England-based company a market value of 641 million pounds ($1 billion).

“Bid rumors are doing the rounds,” said Will Hedden, a sales trader at IG Index in London. “We saw the newswire earlier about SAP being a possible buyer, since then we heard there may be another. It’s not surprising that they are a potential target after that sharp fall last month.”

Micro Focus tumbled 26 percent on Feb. 15 after saying quarterly earnings failed to meet its forecasts.

Charles Palmer, a spokesman for Micro Focus at Financial Dynamics, declined to comment.

To contact the reporters on this story: Andrew Rummer in London at arummer@bloomberg.net; Finbarr Flynn in Dublin at fflynn3@bloomberg.net

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.