Deals
Software AG’s 26% Slump Makes Company Cheaper Target for HP
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Software AG, Germany’s second-largest software maker, plunged after fourth-quarter profit and sales missed analysts’ estimates, making the stock cheaper for potential acquirers such as Hewlett-Packard Co.
The shares fell as much as 26 percent in Frankfurt, the steepest drop since April 2002, and traded 22 percent lower at 1:22 p.m., giving the company a market value of 2.04 billion euros ($2.6 billion). Josep Bori, an Exane analyst, said last week that the company may become a target for Hewlett-Packard or German peer SAP AG, as Hewlett-Packard’s $10.3 billion takeover of Autonomy Corp. last year may prompt interest in other European software companies.