Activist investor takes 5% stake in Micro Focus

Activist investor Elliott Advisors, which sparked a shakeup at Dundee-based Alliance Trust in recent times, has taken it stake in troubled Micro Focus International to 5.1 per cent.

The move will be ramp up the pressure on the software firm after it recently warned on sales and saw its chief executive depart abruptly.

A stock exchange statement from Micro Focus yesterday said Elliott Advisors had a stake of more than 5 per cent. It comes after the company recently revised its guidance on falling annual revenues to between minus 6 and minus 9 per cent, compared with minus 2 and minus 4 per cent, after seeing revenues drop at a faster rate than expected.

The group, which sealed a £6.8 billion takeover of Hewlett Packard Enterprise’s software business in September, also announced that chief executive Chris Hsu was quitting to “pursue another opportunity”, six months after taking the role.