Tibco Software Starts Review Of Strategic Alternatives, Shares Up

(RTTNews) - Business software maker Tibco Software Inc. (TIBX), Wednesday said it has commenced a review of strategic and financial alternatives through the formation of a special committee, following the pressure from an investor to explore a sale. Shares of the company rose ten percent in the after-hours trade, following the news.

The committee consists of Nanci Caldwell, David West and Eric Dunn. The company has retained Goldman, Sachs & Co. and Wilson Sonsini Goodrich & Rosati to assist in this review.

"Following a detailed evaluation over the past several months, we have determined that it is prudent to undertake a wide review of strategic and financial options to see which alternative or alternatives, including our standalone plans, are in fact the best way to maximize shareholder value," said CEO Vivek Ranadive.

Last month, The Wall Street Journal had reported that Tibco had been approaching potential suitors, including private-equity firms, for a sale

Praesidium Investment Management Co., which owns over 3 percent of Tibco's stock, had sent a letter to Tibco's board asking the company to commence a review and to explore a potential sale of the company.

TIBX closed Wednesday's trading at $21.04, down $0.16 or 0.75%, on the Nasdaq. The stock, however, gained $2.08 or 9.89% in the after-hours trade.