LONDON (Reuters) – Micro Focus shares surged on Thursday, with traders citing a Bloomberg report that hedge fund Elliott Management has taken a stake in the UK software firm.
The shares jumped as much as 12 percent to their highest in a month before swinging back, and were last trading up 6.6 percent.
The report, citing unnamed sources, said Elliott has built a position in Micro Focus and plans to push for changes at the firm, without detailing the size of Elliott’s holding or the changes in question.
Micro Focus shares were pummelled by a sales warning and its CEO’s departure on March 19. The stock has more than halved in value since the start of the year.
Its U.S.-listed shares were briefly halted from trading due to the spike, but then resumed.
A spokeswoman at Elliott Management declined to comment. Micro Focus was not immediately available for comment.
Reporting by Helen Reid; Editing by Alasdair Pal/Keith Weir