Shares in Micro Focus International PLC (LON:MCRO) spiked higher in afternoon trading after a report on Bloomberg said activist investor, Elliott Management Corp. has built up a position in the enterprise software firm.
Around 2.30pm, the FTSE 100-listed firm’s share price was 7% higher at 1,252p.
Bloomberg said the New York hedge fund. run by billionaire Paul Singer, plans to push for changes at the UK firm, which transformed itself last year following the US$8.80bn reverse takeover of Hewlett Packard Enterprise Co's (NYSE:HPE) software arm in September, according to people familiar with the matter.
The news group added that the size of Elliott’s holding and the changes it would be seeking aren’t clear.
Micro Focus shares halved last month on news its chief executive officer Chris Hsu had stepped down with immediate effect as it reported that full year revenue is expected to decline further than originally anticipated.
The group said Hsu - CEO since September 2017 - resigned in order to "spend more time with his family and pursue another opportunity." He was replaced by the software firm’s chief operating officer Stephen Murdoch.