The management and board of BEA Systems (BEAS) are boobs of the first order. Oracle (ORCL) offered $17 a share for the company when it was trading below $14. The BEAS shares had not been at $17 since 2002.
The reaction from the BEAS board was that the company was worth $21. The number does not appear to have a rational basis or justification. But, if wishes were horses all the beggars would ride.
Oracle has now come back to BEAS with a message. It follows weeks without any other bidder emerging for the company. Oracle say that, if it makes a bid, it will be below $17. “If we made another offer [for BEA], the price would be lower,” Larry Ellison, the company’s CEO said at Oracle’s annual analyst meeting on Wednesday. Pointing to the recent retreat in technology stocks, he added: “Clearly the $17 price seems too high now," reports the FT.
BEAS has no leverage. It should beg for the $17 and take it. At least its shareholders would get about what the company trades for now.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
