ASPEN TECH INVESTOR ELLIOTT OPPOSES EMERSON’S TERMS
(Bloomberg) -- Elliott Investment Management has emerged as the largest minority investor in industrial-software company Aspen Technology Inc., with a position worth more than $1.5 billion, people with knowledge of the matter said.
The activist investor plans to oppose the terms of Emerson Electric Co.’s latest offer to buy the shares in Aspen Tech that it doesn’t already own for $265 apiece in cash, according to the people. Elliott believes the price is too low, they said.
Elliott’s stake in Aspen Tech is more than 9%, the people said, asking not to be identified discussing private information. A representative for Elliott declined to comment. A spokesperson for Aspen Tech couldn’t immediately be reached for comment.
“Emerson will continue to be a disciplined acquirer and will only pursue transactions that are in the best interests of its shareholders and meet its strategic and financial criteria,” a representative for Emerson said in an emailed statement. “We remain confident in the benefits of the announced transaction with AspenTech.”
St. Louis-based Emerson sweetened its offer for Aspen Tech in January after investors and analysts criticized an original November bid of $240 a share as too low. Emerson’s improved offer values Aspen Tech at a fully diluted market value of $17 billion.
Aspen Tech rose 3.6% to $275.00 at 11:12 a.m. in New York trading Friday, giving the company a market value of $17.4 billion.
Emerson has been seeking to build a portfolio of industrial technology businesses, Lal Karsanbhai, the company’s chief executive officer, said in a statement on its November offer for the Aspen Tech shares. Aspen Tech provides software for complex operations like digital grid management and emissions reduction to energy and industrial users.
In 2022, Elliott and other hedge funds challenged a tender offer by Philip Morris International Plc for nicotine pouch maker Swedish Match AB. Elliott eventually supported the improved Philip Morris bid.
Goldman Sachs Group Inc. and Centerview Partners are financial advisers to Emerson, while Qatalyst Partners and Citigroup Inc. are advising Aspen Tech’s special committee.
(Updates with comment from Emerson in paragraph four)
Most Read from Bloomberg
- Nice Airport, If You Can Get to It: No Subway, No Highway, No Bridge
- Citadel to Leave Namesake Chicago Tower as Employees Relocate
- NYC Sees Pedestrian Traffic Increase in Congestion-Pricing Zone
- How London’s Taxi Drivers Navigate the City Without GPS
- Transportation Memos Favor Places With Higher Birth and Marriage Rates
©2025 Bloomberg L.P.
2025-02-07T14:14:10Z
