Shareholder proposes Epicor Software acquisition

The $9.50-per-share proposed bid represents a premium of 20.4 percent over Epicor's closing price Tuesday, but is still well below the stock's 52-week high of $14.04 reached last October. Based on Epicor's roughly 59.6 million outstanding shares as of Aug. 1, the deal would be worth roughly $566 million.

Hedge funds Elliott Associates and Elliott International LP, which sent a letter to Epicor together, own 10.2 percent of Epicor's shares and $28.7 million of the company's convertible notes.

Elliott said any offer could "potentially increase" if it is provided due diligence, but said efforts to look at the company's books so far have been rebuffed.

Epicor confirmed it has received and will review the unsolicited proposal.

Irvine, Calif.-based Epicor's shares rose $1.01, or 13 percent, to $8.90 in afternoon trading, having earlier peaked at $9.08. But Cowen and Co. analyst Peter Goldmacher maintained an "Underperform" rating on the stock, saying Epicor's business is under pressure and profit guidance will likely be lowered in the coming quarters.

He said Elliott's offer is on par with recent acquisition bids such as JDA Software Group Inc.'s purchase of i2 Technologies Inc. for $346 million in cash, and represents "savvy buying" of distressed assets in a difficult market. But he doubts Epicor's management is willing to sell the company at current prices.