BEA to Oracle: We're not opposed to a reasonable offer
But the $6.7B offer on the table isn't good enough
Oracle released a statement today saying that BEA's board of directors had officially turned down its offer to buy the company. It set a deadline of Sunday at 5 p.m. Pacific time for BEA to accept the $17-per-share bid.
But several hours later, BEA fired back its own missive in the form of a letter from William Klein, vice president of planning and development, to Oracle President Charles Phillips. In the letter, Klein characterized Oracle's offer as too low but made it clear BEA is not against being acquired for the right price.
"BEA is worth significantly more than $17 to Oracle, to others, and most importantly to BEA shareholders," the letter said. "BEA's Board has not indicated that it would be opposed to a transaction that appropriately reflects BEA's value, reached through a reasonable process."
An Oracle spokesperson did not immediately return a request for comment.
The total value of Oracle's existing bid is about $6.7 billion, and the enterprise software giant said it "has no interest in a long, drawn-out process to acquire BEA."
So far, the BEA-Oracle talks have sparked dueling public statements, missed meetings and shareholder angst, but they haven't been nearly as heated as other merger battles, such as the one surrounding Oracle's acquisition of PeopleSoft.
Still, it remains unclear whether Oracle will increase its offer for BEA, which it termed "generous" in its statement.
"Oracle typically has some [pricing] ratios it uses in its acquisition strategy," Forrester Research Inc. analyst Ray Wang said. "If they really want to dominate the middleware space, this is an acquisition they'd want to make."
If it succeeds in buying BEA, Oracle would swallow up a major competitor in the application server market, a scenario that has had some observers wondering about the fate of BEA's technologies.
Oracle's move to purchase BEA is only the latest in a string of high-profile purchases in 2007. The company has forked over billions for a wide array of enterprise software companies, including business process management vendor Hyperion Solutions and data grid application vendor Tangosol.
BEA has some products that would fill holes in Oracle's portfolio. But the two companies compete closely on other fronts, such as the markets for Web server and enterprise service bus offerings.
"Those are areas with lots of overlap," Wang said. "But there's a lot of good technologies on both sides."
- Study: Total Economic Impact of Google Apps Employees can work faster and IT spending can decrease when companies switch to Google Apps, says a commissioned study by Forrester Consulting. Going...
- Protecting Digitalized Assets in Healthcare Healthcare providers face an urgent, internal battle every day: security and compliance versus productivity and service. For most healthcare organizations, the fight is...
- Is a SaaS Deployment Right for You? Find out the answer and as well as the other deployment options.
- Discover How Mail Express Solves 2 of Your Biggest IT Headaches Email. It can be the source of some of IT's biggest headaches. As it eats up storage and bandwidth, it also opens up...
- Increasing the Value of Your Reports and Dashboards Learn how incorporating other analytical capabilities such as predictive modeling and visualization can increase the value of your reports and dashboards by providing...
- Video surveillance for IT: maximum image quality, minimum bandwidth Join us on Thursday, May 8th at 1 p.m. EST when Willem Ryan, Senior Product Marketing Manager at Avigilon, will discuss how IT... All Management White Papers | Webcasts