Why the Iress (ASX:IRE) share price has shed 11% in a month

Here's what might be weighing on the Iress share price lately.

The Iress Ltd (ASX: IRE) share price has been struggling this month amid rumours its takeover is increasingly unstable.

Iress received its latest takeover offer of an implied $15.91 per share from EQT Fund Management on 11 August. The offer values Iress at around $3.1 billion.

However, reports that EQT is hesitating on the much-anticipated takeover and is considering lowering its offer have emerged today.

Right now, the Iress share price is $13.50. That's 1.68% lower than its previous close and 11.4% lower than it was this time last month. It's also 15% lower than EMT's part-cash-part-scrip offer.

Let's take a closer look at the pickle facing the software provider.

A woman sits on her lounge in front of her laptop looking concerned.

Image source: Getty Images

A quick refresher

The latest takeover offer posed to Iress by EQT is the third.

The fund manager offered $14.80 per share for the software company on 18 June. The bid was swiftly rejected.

Then, EQT pushed an offer of between $15.30 and $15.50 per share. That was once more rejected by Iress' board. However, Iress did agree to allow EQT access to information that could allow it to put in a more suitable bid. The Iress share price shot up 13.9% on the day it announced EQT's second offer.

Of course, that led to EQT's latest $15.91 per share offer, which Iress agreed to grant EQT a 30-day period of exclusivity. The Iress share price gained 5% on the back of the initially successful takeover offer.

However, the period of exclusivity was recently extended for another 10 days to allow EQT to complete its due diligence.

Today's rumours

The Iress share price is in the red again today amid reports stating that EQT is second guessing its plan to takeover Iress altogether.

EQT is apparently rumoured to be considering abandoning the takeover or lowering its offer once more.

Further, according to reporting by The Australian, EQT might be working to bring BGH Capital on board to partner in its purchase of Iress.

The market will likely soon find out whether the rumours are true. The extended period of exclusivity is set to end on Sunday evening.

Iress share price snapshot  

Despite the poor month's performance, the Iress share price is still having a good year on the ASX.

Right now, it's 25% higher than it was at the start of 2021. It has also gained 37% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Man lying down on sofa and trading on his laptop.
Technology Shares

Zip to consolidate shares 5-for-1 in 2026: What shareholders need to know

Zip plans to consolidate shares 5-for-1, pending shareholder approval at its 2026 AGM.

Read more »

Woman with her kitten on a laptop in her home office.
Technology Shares

Should I buy WiseTech shares after today's big news?

I take another look at the tech stock after an important source of uncertainty was removed.

Read more »

a man sits at a computer in deep thought with hand on chin in a darkened room as though it is late and night and he is working on cybersecurity issues.
Technology Shares

Down 11% in a month: Is it time to buy Xero shares?

Have the ASX tech shares now bottomed? Or is there more downside coming?

Read more »

A group of seven young people of different genders and cultural backgrounds stand in a group with serious expressions wearing casual young persons' attire.
Technology Shares

Nextdc vs WiseTech: Which ASX tech stock is better for a 25 year old investor?

Weighing Nextdc vs WiseTech Global for a young investor? Here’s which ASX tech stock I think deserves the spot in…

Read more »

Man analysing data on his laptop.
Technology Shares

Why this rapidly growing ASX drone stock could rise 36%

Bell Potter has a lot of good things to say about this company.

Read more »

Happy mum and dad with daughter smiling on couch after relocation to new home.
Technology Shares

Down almost 40%, are Life360 shares a strong buy in October?

Bell Potter thinks this tech stock could deliver big returns.

Read more »

A group of seven young people of different genders and cultural backgrounds stand in a group with serious expressions wearing casual young persons' attire.
Technology Shares

Xero vs Megaport: Which ASX tech stock suits young investors better?

I break down Xero vs Megaport shares for young investors — with a clear verdict on which tech stock I’d…

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

Could the DroneShield share price reach $2 in 2027?

I look at what it would take for this fallen defence technology share to rebound.

Read more »