(Reuters) -Australia-listed software maker Altium on Monday rejected a buyout proposal from U.S. peer Autodesk Inc as undervaluing the company but kept the door open for a better offer, helping its shares end at near six-month highs.<\/p>\n
Autodesk, which makes architecture designing software AutoCAD, offered Altium A$38.50 per share, a 41.5% premium to its last closing price, valuing the company at A$5.05 billion ($3.91 billion).<\/p>\n
San Diego, California-based Altium said it \u201crejects the proposal at the current price\u201d, adding it will entertain interested parties for an appropriate valuation and pursue a \u201creview of all potential strategic alternatives\u201d.<\/p>\n
Shares closed 39% higher at A$37.83 after soaring as much as 40.6% to post their biggest intraday gain in more than a decade following the announcement.<\/p>\n
Through Friday\u2019s close, shares had lost about 20% of their value this year. The company in February reported a near 15% drop in profit attributable to $19.7 million for its half-year ended December.<\/p>\n
The proposal followed talks of a strategic partnership between the two companies, with Autodesk looking to integrate Altium\u2019s electronics designing software with its engineering and manufacturing software platforms to provide its users with a host of applications under one cloud network.<\/p>\n
The \u201cat the current price\u201d phrasing potentially alludes to the willingness to complete a deal at a higher price, analysts at brokerage RBC Capital said in a note.<\/p>\n
\u201cIt is unlikely Autodesk would return with a materially higher bid for Altium. However, Autodesk may incrementally increase its offer to gain further engagement from Altium\u2019s board,\u201d the analysts added.<\/p>\n
When asked by Reuters, a spokesperson for Autodesk said the company was willing to engage further with Altium.<\/p>\n
Autodesk said it would finance a transaction using cash and debt.<\/p>\n
($1 = 1.2923 Australian dollars)<\/p>\n