BEA Already At Premium To Offer (BEAS, ORCL)

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.

• Any closer to an offer?
• Still playing hide and seek;
• Carl Icahn might not win.

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.