BEA, Oracle remain at odds as deadline approaches
Sunday, 28 October 2007
SAN FRANCISCO, Oct 27 (AFP): Business software giant Oracle remained at odds Friday with BEA Systems over a potential takeover bid after the two rivals exchanged letters holding firm to their positions over the price for BEA.
BEA executive William Klein said Oracle's offer of US$17 a share or some $6.7 billion was "unacceptable" because it "significantly undervalues BEA."
Klein added BEA's board members "therefore assume that your proposal will expire on October 28."
On Thursday, Oracle president Charles Phillips called the BEA counterproposal at $21 per share price "an impossibly high price for Oracle or any other potential acquirer."
Phillips said this would be an 80 per cent premium to BEA's stock price "before the appearance of activist shareholders who are pushing the BEA board to sell the company," and added: "Nobody would seriously consider paying that kind of multiple for a software company with shrinking new license sales."
Oracle, the world's second-largest software group, said Tuesday its original bid would be withdrawn if BEA maintained its refusal to submit the plan to shareholders.
The offer comes as Oracle vies to keep up its battle against German rival SAP, which earlier this month announced a deal for French software maker Business Objects for 4.8 billion euros ($6.8 billion).
BEA executive William Klein said Oracle's offer of US$17 a share or some $6.7 billion was "unacceptable" because it "significantly undervalues BEA."
Klein added BEA's board members "therefore assume that your proposal will expire on October 28."
On Thursday, Oracle president Charles Phillips called the BEA counterproposal at $21 per share price "an impossibly high price for Oracle or any other potential acquirer."
Phillips said this would be an 80 per cent premium to BEA's stock price "before the appearance of activist shareholders who are pushing the BEA board to sell the company," and added: "Nobody would seriously consider paying that kind of multiple for a software company with shrinking new license sales."
Oracle, the world's second-largest software group, said Tuesday its original bid would be withdrawn if BEA maintained its refusal to submit the plan to shareholders.
The offer comes as Oracle vies to keep up its battle against German rival SAP, which earlier this month announced a deal for French software maker Business Objects for 4.8 billion euros ($6.8 billion).