Agile Software Corporation
(NDAQ:AGIL) shares moved up $0.24, or 3.34%, to $7.43 today after the
company announced the date of its annual shareholders meeting in a
Schedule 14A
proxy filing with the SEC. Normally this isn't such big news, but in
Agile's case this year's June 20th annual meeting promises to be like
no other!
Agile Software has been engulfed in a month-long
battle with activist hedge fund manager Robert Chapman, who has been
pushing for a sale of the company. And he is not alone - Shamrock
Activist Value Fund also voiced its support for the idea along with
other large institutional investors.
The two hedge funds are
concerned that independent software companies focusing on the product
lifecycle management industry cannot compete against their larger
rivals. Consequently, a sale of the company may be the only viable
option for investors concerned over slow revenue growth and narrowing
profit margins.
Agile has reportedly hired Citigroup to help it
explore its strategic options, but some investors worry that they may
use their large cash position to make an acquisition rather than
auction itself off. This is why many large investors are going to be
carefully watching the company during its annual meeting this year,
hoping to get an idea of where they plan on taking the company.
Meanwhile,
Chapman hinted that he would outline his argument for selling the
company in a filing with the SEC shortly. We will likely get to see
this before June 20th so that it can be discussed during the company's
annual meeting. If Chapman and other investors are successful in
pushing for a sale of the company, it could mean significant share
appreciation. This makes AGIL a stock
worth watching!
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