We don't deal in rumours but the papers today are full of talks of a bid for Micro Focus as an explanation (or the cause of?) the near 10% 'recovery' in their share price yesterday. SAP and IBM are mentioned.
You can read our views on Micro Focus, and the rather sorry tale of multiple profit warnings, starting at Micro Focus fails to answer our one big question and working back. Apart from being a long term shareholder in Micro Focus, I actually have a bit of a soft spot for them as one of a very small (and ever dwindling) band of reasonably-sized UK HQed software companies. I just happen to believe that where you are HQed matters as you tend to concentrate your management, R&D, advisers, stock quote, (even research analysts!) etc there too. Micro Focus was good for Newbury and the UK. I can see all these moving away should these rumours be true.
I also rate both Nigel Clifford and Mike Philips - the new CEO and CFO respectively. I had rather hoped they may be given the opportunity to 'prove their mettle'. Indeed I agree with George O'Connor (Panmure Gordon) in his morning note "We sorely want Micro Focus to do well operationally – the team is there – the new products are there – - the sales model is there - the demand environment is there – let’s fire up the Quattro and build up that pipeline".