Hedge fund targets City tech firm in £1.4bn deal

A RUTHLESS US hedge fund with a history of targeting firms in takeover talks has set its sights on City tech pioneer Fidessa.

Activist fund Elliott Capital Advisors has revealed a stake in the British software group. On Tuesday Fidessa said it was in takeover talks with Swiss rival Temenos for £1.4bn.

Fidessa, founded in the 1980s, pioneered software used by City traders, with one of its founders expected to make millions from the sale. Temenos, which makes software used in banking, has offered 3647p per share. But Elliott’s disclosure of a 4.87pc holding in Fidessa will fuel speculation it wants a higher price.

Elliott has snapped up shares in firms locked in takeover talks, then eked out a profit by piling pressure on the boards of the firms involved to get the bidding price increased.

It declined to comment on its intentions.

Fi dessa’ s shares increased by 5pc, or 180p, to 3750p, taking them above the offer price.