BEA Already At Premium To Offer (BEAS, ORCL)

Apps & Software

Published: October 12, 2007 7:58 am

Last Updated: March 26, 2020 3:09 pm

BEA Systems Inc. (NASDAQ:BEAS) is already trading north of the $17.00 cash buyout offer from Oracle (NASDAQ:ORCL). Almost 30 million shares have already traded hands, and there is more than 30 minutes to the market open. Oracle proposed to acquire BEA Systems for $17.00 per share in cash.

Carl Icahn just got vindicated for his persistence. The $17.00 pershare offer is a 25% premium over yesterday’s closing price. But whatis interesting is that a "letter being sent" is no assurance that adeal will be approved by management at BEA Systems. The 52-week high is $16.77. Management can hold out here if they want, but at some point they’ll have to roll over if the deal gets too sweet. Pre-Market trading had shares up over the $16.00 level right after the offer was announced. Shares are now trading right at $18.00, $1.00 above the buyout price. Wall Street is thinking the offer will get bumped up, or maybe even that another suitor would step in.

Jon C. Ogg
October 12, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.