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.

Detroit-based Compuware’s plan includes eliminating $60 million in company costs over the next three years, spinning off cloud platform Covisint and implementing a plan to return capital to shareholders. Compuware filed paperwork for a possible initial public offering for Covisent in December. 

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