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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: H James Morris who wrote (8239)	10/22/2002 10:09:09 AM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

VC Firm Wants a Director's Seat at Manugistics By Ronna Abramson Staff Reporter TheStreet.com 10/21/2002 07:36 PM EDT Not everyone, it seems, has given up on supply-chain management software. Private equity and venture capital firm Warburg Pincus has amassed a nearly 11% stake in supply-chain software maker Manugistics (MANU:Nasdaq - news - commentary - research - analysis) and is in talks with management about gaining a seat on the company's board of directors. According to a filing with the Securities and Exchange Commission, the New York-based firm owned 7.6 million shares of Manugistics as of Oct. 18, including 642,900 shares bought Oct. 16 through Oct. 18 for about $2 per share. Shares of Rockville, Md.-based Manugistics have plummeted 91% off their 52-week high of $22.75. The company's sales have declined amid the downturn in IT spending. Manugistics shares fell 12 cents, or 5.8%, to close Monday at $1.96. Manugistics has had three rounds of layoffs in the last year as well as two involuntary furloughs. Manugistics and other supply-chain companies such as i2 Technologies (ITWO:Nasdaq - news - commentary - research - analysis) have been particularly hard hit by the IT spending downturn because of their heavier dependence on large deals and stiffer competition from enterprise software makers. But in its SEC filing, Warburg said it believes the "the company represents an attractive investment based on the company's business prospects and strategy." Warburg disclosed that it has "engaged in discussions with management of the company concerning the possibility of a representative of the reporting persons [Warburg Pincus] becoming a member of the board of the directors of the company as well as acquiring additional shares of company stock and expect to continue to engage in such discussions." Warburg also noted it has followed Manugistics and its supply-chain management industry for many years and is "supportive of the management team and its strategy." thestreet.com