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Will they dismantle compuware?
Ah, the age old question, sell, or not?
Besides the fact changing management may also lessen the commitment of Compuware to the city... One has to wonder what this really means. But note that there's no response to the offer as of yet, it could get real ugly if it's rebuffed.
I have no confidence in any "group" that seeks to take over a business like that. Elliott Management is what's referred to as a "vulture fund" So, God help Compuware. Karmanos got out while the getting was good, I think.
no more new yorkers! im pretty done with just about anything they have to offer
Bad for Detroit, Bad for Compuware employees....
Elliott is a Vulture Fund...
http://en.wikipedia.org/wiki/Elliott...nt_Corporation
http://en.wikipedia.org/wiki/Vulture_fund
I don't think that Compuware employees would be happy with this sale... neither do I think the city would.
Compuware stock once traded at $40 a share in 1999, giving many employees quite a nest egg for their retirement... until after Y2K burst their bubble... and it has traded generally in the $7-$15 range.
Not good for Detroit... since many of the jobs could be outsourced/exported.
they have a great track record [[TWA, MCI, Worldcom, Enron....)
As a stockholder, I need $15 to break even. They are offering $11.
As a planner, I am concerned that this may do quite a bit to reduce employment in Detroit.
If this happens, I lose on both accounts.
Given Karmanos' move from CEO --> Chairman --> out and the timing of this, it seems like he has been the glue that's kept things moving in a certain direction.
Not unlikely they'll stay here, though, if Compuware owns the building.
More added pressure:
http://finance.yahoo.com/news/sandel...200000511.html
Sandell is pretty demanding with their 2.5%.Quote:
Originally Posted by sturge
Employees own much, much more.
Fuck you, Sandell. And fuck you, Elliott Mgt. Greedy assholes both.
WOW!! That was one a HELL of a letter. Short, sweet and to the point. It looks like Karmonos has already relinquished control of the company to Sandel. I've been with two companies where I've seen this happen and It appears this deal is already as good as done. Karmonos must have been bailed out at some point along the way by these investors.Quote:
Originally Posted by sturge
This is hardcore New York business protocal at its best. DAMN!!NORTH
In the real world, their shutting Detroit down....
LOL maybe I should write a letter saying its a raw deal? I have 400 shares, what is that about 0.0000025 percent?Quote:
Originally Posted by East Detroit
I'll give my votes to either Archer or Karmanos.
Hmmm.. vulture fund? Let's see - Compuware icome is down $120 million this year off of revenue of $1 billion. They're spending a lot of money on something.
Honestly I haven't heard of anyone using Compuware software aside from Covisint, or their QA testing tools [[one of which they sold off)
Looking at their product portfolio, none of them, aside from Covisint, are in growth areas. Companies are moved to virtualized and cloud infrastructures. Compuware, until very recently, specialized in mainframe software. Mainframes will have holdouts in some sectors, but you aren't going to gain any customers in that sector.
Looks like a legal battle is about to start....
http://www.thestreet.com/story/11795...ansaction.html
Well, bright side is that once Compuware is stripped and sold, Dan Gilbert can have a really nice, slightly used HQ for cheap.
Compuware will be radically downsized. Far too many employees as is, and investors are pissed. Downtown will now be truly Gilberttown.
People better hope that Quicken Loans thrives. Detroit probably has the least diversified downtown employment base of any major city.
Washington DC is not very diversified.Quote:
Originally Posted by Bham1982
Detroit? Cars, Pizza, Loans, IT, govt, lawyers...
They're a little top heavy in crooks and lobbyists...Quote:
Originally Posted by DetroitPlanner
Washington doesn't need to be diversified. They print/borrow as much money as they want. Far bigger enterprises than Quicken Loans have gone the way of the dodo. Detroit is putting all of its eggs in one basket, again. Hope it works out this time.
Which basket is that?Quote:
Originally Posted by Islandman
Yeah, I guess DC isn't diversified, but there's zero chance the govt. [[and the associated lawyers, consultants, lobbyists and foundations) will be dissolved, so it's a very safe market. Probably the safest downtown employment base in the U.S.Quote:
Originally Posted by DetroitPlanner
Detroit, not so much. Cars and govt., yes, and Quicken Loans. That's about it.
Most law firms are in the suburbs these days, and even the downtown firms have big offices in the suburbs [[usually Bloomfield Hills, where the partners live). The mid-sized firm that my dad worked for just moved from the Buhl Building to Franklin, so the flight continues even today.
And, yeah, there's Little Caesar's, but I doubt they need too many folks in the HQ office. That's not a top heavy business.
But Quicken certainly seems to be doing well. I don't understand their appeal to the consumer, because they're just brokers, so you're paying more than if you went direct to the banks or wherever, but Gilbert obviously knows what he's doing.
The "pile on" Detroit begins. We'll be seeing a New York takeover attempt in action. I hope Karmonos can stand his ground long enough because I think they're going to try to bleed him with mounting legal fees..Quote:
Originally Posted by Gistok
The first basket was auto manufacturing, and all of its ancillary companies/suppliers, now it's Gilbert and his empire. It would be much more comforting if it wasn't all tied to one person, imo. And yes, I know that his empire has different business ventures.Quote:
Originally Posted by TexasT
I remember how Compuware was seen as the savior, and we now see what is occurring with that. Still, for the time it was a welcome addition downtown.
+1 on everything but to clarify the last part... from their website "Quote:
Originally Posted by Bham1982
This isn't some local interdependent mortgage broker.Quote:
Quicken Loans Inc. is the nation’s largest online retail mortgage lender and among the five largest overall retail home lenders in the United States. The company closed a record $29 billion in retail home loan volume across all 50 states in 2010, and recently closed its 1 millionth loan."
I would assume their appeal to the consumer is that they do what they do better, faster and cheaper than the traditional banks.