Oracle snubs BEA on share price
$21 per share? You're having a laugh
Oracle scoffed at BEA last night, describing the middleware's self-set $21 per share price tag as "impossibly high" and saying it had no intention of raising its offer.
BEA has been snubbing Oracle's offer of $17 per share, but yesterday said it would authorise negotiations with Oracle and other bidders at a price of $21 per share – valuing the company at $8.15bn.
Last night Oracle derided BEA's board for seeking "an 80 per cent premium to BEA's stock price before the appearance of activist shareholders who are pushing the BEA board to sell the company".
It went on to twist the knife, saying: "Nobody would seriously consider paying that kind of multiple for a software company with shrinking new license sales."
Oracle restated its call for BEA's board to put its $17 per share offer to a shareholder vote, and reiterated its intention to drop the bid and "move on and evaluate other potential acquisitions" if BEA's directors refuse to play ball. ®