BEA counters Oracle: $US21 a share sounds better

BEA tells Oracle it wants $US21 a share

BEA Systems' board of directors has named an acquisition price to competitor and suitor Oracle Corp.: $US21 a share, $US4 more than Oracle's initial offer.

"We continue to believe that Oracle's unsolicited proposal to acquire BEA at $17.00 per share significantly undervalues BEA, and is therefore not in the best interests of BEA shareholders," the company said in a statement Thursday.

Oracle on Tuesday set a deadline of Sunday for BEA to accept its "generous" original bid, which totals about $6.7 billion. The company also indicated it had no interest in a protracted merger battle.

But BEA declared Thursday that the company's existing assets and future business prospects dictate a significantly higher sale price. The company said it has customers for its array of enterprise software among 75 per cent of the Fortune Global 500, along with $1 billion in cash reserves and no debt.

At $21 per share, BEA would cost Oracle about $8.3 billion. BEA's stock was trading at $17.60 a share midday Thursday.

BEA said it arrived at the $21-per-share figure after talking to its financial advisor, Goldman Sachs. The company said it has authorised its attorneys to give a draft merger agreement to third parties willing to meet the price. The agreement would "provide for an appropriately high degree of certainty of closing," BEA said.

A successful purchase of BEA would significantly increase Oracle's standing in the middleware space. While some BEA assets would help round out Oracle's offerings, the companies overlap in key categories like Web servers and ESB (enterprise service bus) products.

A senior analyst with Nucleus Research in Wellesley, Massachusetts, David O'Connell, said there is a major upside for Oracle in buying BEA, even at a higher price. "Is [BEA] worth Oracle paying a lot for? Yeah," O'Connell said. Oracle would gain BEA's customer base and technologies, a collective boon for Oracle's Fusion middleware and SOA (service-oriented architecture) offerings, the analyst noted.

Some have questioned the eventual fate of certain BEA technologies following a merger. But O'Connell said he does not expect major disruptions for existing customers. "My sense is they want to use Fusion to let people continue using those applications," he said. "That's what SOA and integration is all about."

An Oracle spokeswoman declined to comment on BEA's statement.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?