(Reuters) -Activist investor Elliott Management said on Friday it has invested more than $1.5 billion in Aspen Technology, opposing the company’s decision to accept Emerson Electric’s $7.2 billion tender offer.
Elliott argues that Emerson’s per-share offer of $265 for Aspen undervalues the company, adding that it will not tender its shares at the current price.
Aspen’s shares rose about 4% in morning trading, while Emerson fell over 1%.
Emerson, which currently owns 57% of Aspen, agreed to buy the remaining shares in the software supplier that it did not own last month.
The St. Louis, Missouri-based industrial company is looking to strengthen its focus on the industrial automation segment through the acquisition.
Its offer price of $265 per share was at a premium of 10.4% to the $240 offer Emerson made in November.
Emerson and Aspen did not immediately respond to a Reuters request for comment.
Elliott has become one of the most influential activist investors with about $70 billion in assets, having recently pushed for a breakup at Honeywell and changes at Southwest Airlines.
The activist’s $5 billion stake in Honeywell, its largest single investment, culminated in the company splitting its aerospace and automation businesses.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Tasim Zahid)
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