Supply chain optimization software vendor Manugistics Group Inc watched its depressed share price rise by 19% on Friday amid rumors that enterprise applications house PeopleSoft Inc was set to make an acquisition offer. Prior to these rumors, Manugistics’ stock had been trading at around $10, less than one sixth of the highs reached in April this year. Manugistics share price collapsed in May after the company revealed a sudden decline in software license sales and a consequent operating loss, and the company has been struggling to convince investors that it can compete in a crowded marketplace ever since. Although its depressed market value makes Manugistics a potential target, Peoplesoft already possesses substantial supply chain management expertise acquired via the $225m acquisition of Red Pepper in 1996, as well as the $10m purchase of Distinction Software Inc earlier this month.
