The Bravura Solutions Ltd (ASX: BVS) share price is down 8.4% today and down 20% over just the past month despite the financial software group providing no change to its operating profit guidance for financial year 2019.
On May 2 it told investors it was still on track to achieve mid-to-high teens earnings per share growth and announced that it planned to make a takeover offer for fintech rival GBST Holdings Limited (ASX: GBT) valued at $2.50 per share.
However, after a small profit upgrade today, GBST shares are trading at $2.60 and above Bravura's offer price to suggest it will need to significantly lift its bid if it is to have a chance of completing what looks an opportunistic offer.
GBST's news may be weighing on the Bravura share price today, as on May 3 Bravura raised $165 million from institutional investors by issuing new shares at $5.75 each in part to fund the GBST acquisition.
Those institutional investors are now all underwater and the GBST deal looks less likely, but it's no surprise the company's management team wanted to take in all that cash with the scrip at arguably overvalued levels.
The stock is probably also coming under pressure as Bravura has significant operations in the Brexit-hit UK financial services market, with a larger rival in Link Administration Holdings Ltd (ASX: LNK) recently blaming a big profit downgrade on weakness in the UK market.