Apps & Software
Oracle Wants to Acquire BEA Systems (ORCL, BEAS)
Published:
Last Updated:
Oracle Corporation (NASDAQ:ORCL) has delivered a letter to the Board of Directors of BEA Systems, Inc. (NASDAQ:BEAS) on October 9 whereby Oracle proposed to acquire BEA for $17.00 per share in cash. Oracle is prepared to proceed immediately to a process that leads to a definitive agreement.
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. If managementwants to hold out, they’ll probably be able to. Shares are indicatednorth of $16.00 in very early indications.
Oracle President Charles Phillips: "We have made a serious proposal including a substantial premium for BEA. We believe our all cash offer provides the best value for BEA’s shareholders and the best home for BEA’s employees and customers. This proposal is the culmination of repeated conversations with BEA’s management over the last several years. We look forward to completing a friendly transaction as soon as possible. We intend to protect the investment customers have made in BEA’s products by supporting those customers and products for years to come. Our continuing support commitment has been amply demonstrated with all of our previous acquisitions, including PeopleSoft and Siebel. BEA will be no different. The acquisition of BEA by Oracle will enable an increase in engineering resources that will in-turn accelerate the development of our world-class suite of middleware. Both Oracle and BEA customers will benefit from this increase in engineering investment as they migrate to modern SOA technologies."
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.
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.