Elliott Management, a $20 billion hedge fund manager, and BMC Software have brought in financial PR counsel as the BMC shareholder went public May 16 with its push to move toward a sale of the software giant.
Elliott, which has hired Abernathy MacGregor Group for PR support, owns 5.5% of publicly traded BMC and wants the company to form a special committee to explore a sale. The fund released a letter to BMC’s board Wednesday saying it performed “exhaustive research” and initiated a dialogue with senior management about creating greater value for stockholders. “In turn, BMC responded by issuing a press release about adopting a poison pill on Monday,” wrote Elliott portfolio Jesse Cohn.
Financial communications vet Peter Truell heads in-house communications for Elliott. Tom Johnson, managing director and head of M&A for Abernathy MacGregor, leads the account for the Havas-owned PR firm.
Houston-based BMC has engaged Joele Frank, Wilkinson Brimmer Katcher to mount its PR defense and proxy solicitation firm D.F. King & Co. In a statement May 15, BMC said it is “always open to alternatives” but added that its board determined Elliott’s plan is not in the best interest of stockholders.
Joele Frank, managing partner at JFWBK, and Andy Brimmer, partner, are supporting BMC’s VP of investor relations, Derrick Vializ.
BMC a day earlier sparked Elliott’s public response after it adopted the “poison pill” shareholder rights plan in a bid to stave off a hostile takeover attempt. That move came after Elliott’s stake in BMC passed five percent.
BMC earned $401M for fiscal 2012 ended March 31, down from $456M a year earlier.