Software technology company Compuware Corp. (Nasdaq: CPWR) has rejected hedge fund Elliott Management Corp.’s $2.3 billion proposal to buy the company, saying that instead it will work on a cost-reduction plan to provide shareholder returns.

Elliott offered to pay $11 per share for Compuware in December, but Compuware has expressed it thinks that price significantly undervalues the company. Compuware’s shares opened at $10.86 and were trading at $11.41 mid-day after the announcement.

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