(Bloomberg) -- Elliott Investment Management has emerged as the largest minority investor in industrial-software company Aspen Technology Inc., with a position worth more than $1.5 billion, people with knowledge of the matter said.

The activist investor plans to oppose the terms of Emerson Electric Co.’s latest offer to buy the shares in Aspen Tech that it doesn’t already own for $265 apiece in cash, according to the people. Elliott believes the price is too low, they said.

Elliott’s stake in Aspen Tech is more than 9%, the people said, asking not to be identified discussing private information. A representative for Elliott declined to comment. A spokesperson for Aspen Tech couldn’t immediately be reached for comment.

St. Louis-based Emerson sweetened its offer for Aspen Tech in January after investors and analysts criticized an original November bid of $240 a share as too low. Emerson’s improved offer values Aspen Tech at a fully diluted market value of $17 billion.

Shares of Aspen Tech closed Thursday at $265.55, giving it a market value of $16.8 billion. 

Emerson has been seeking to build a portfolio of industrial technology businesses, Lal Karsanbhai, the company’s chief executive officer, said in a statement on its November offer for the Aspen Tech shares. Aspen Tech provides software for complex operations like digital grid management and emissions reduction to energy and industrial users. 

In 2022, Elliott and other hedge funds challenged a tender offer by Philip Morris International Plc for nicotine pouch maker Swedish Match AB. Elliott eventually supported the improved Philip Morris bid. 

Goldman Sachs Group Inc. and Centerview Partners are financial advisers to Emerson, while Qatalyst Partners and $Citigroup Inc(C-N)$. are advising Aspen Tech’s special committee.

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