U.S. Sues to Stop Compuware-Viasoft Deal

Compuware Corp. reasserted its intention to try to acquire Viasoft Inc. and extended its tender offer as the Justice Department filed suit to block the merger. In its filing in federal court in Washington, the U.S. argued that the deal “would result in higher prices and lower quality service for two types of mission-critical software.” Compuware extended its offer to acquire Viasoft for $9 a share, or about $168 million in cash, until 11:59 p.m. EDT Friday. The two firms compete in software used on mainframe computers for testing and debugging and detecting errors that cause a computer crash. Peter Karmanos Jr., chief executive of Farmington Hill, Mich.-based Compuware, said the U.S. “completely mischaracterizes the marketplace for our software products.” He said the firm was reviewing its options with counsel.