ValueAct’s decision to depart leaves only one bid on the table for Misys

MISYS’ shareholder ValueAct said it would not bid for the banking software group, leaving a $2bn recommended offer from private equity group Vista as the only bid on the table following a three-way battle for the British company.
By The Newsroom
Published 3rd Apr 2012, 07:00 BST

ValueAct had teamed up with CVC Capital Partners to examine buying Misys after the group started merger talks with its Swiss rival Temenos in February, triggering interest from Vista Equity Partners.

Misys and Vista agreed a 350p-a-share cash offer last month, which ValueAct, the owner of 21.5 percent of Misys’ equity, did not back, saying it was still considering a joint bid of its own. CVC and ValueAct said yesterday, the date of a put-up-or-shut-up deadline which had been imposed by the Takeover Panel, that they had “no intention to make an offer for Misys”.

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Shares in Misys, which had been trading above 350p, retreated as hopes for a bid battle receded and closed at 349p.

Analysts had already questioned the seriousness of ValueAct’s interest, particularly after the departure in early February of Misys chief executive Mike Lawrie, whom it had backed.

Vista plans to combine Misys with Kondor, the trade and risk management software firm it bought last year.