Feeds

Sun rallies investors despite possible Oracle blocker

Golden parachutes readied

The Essential Guide to IT Transformation

The wheels are rolling on Oracle's $5.6bn proposed purchase of Sun Microsystems, despite the prospect of a legal challenge later this month.

Sun has named July 16 as the date for the company's stockholders to attend a special meeting at its Santa Clara, California campus to vote on what it's optimistically called a "merger."

In a letter to stockholders, Sun's board called Oracle's proposal a "fair" offer that's in the best interests of Sun and stockholders. It called on stockholders to vote for the motion.

We'll see what the court has to say whether it thinks the deal fair or not.

Less than a month before the planned July meeting, a Santa Clara court will hear three class action brought against Sun and its chairman and co-founder Scott McNealy that claim Oracle's offer is unfair and inadequate. They allege a breach of fiduciary duty. Sun and McNealy have so far not responded to the complaints.

Oracle has offered $9.50 cash for each Sun share, the price of which has generally trended down since the spring and summer of 2007. Shares reached a high of $24.36 during Sun's fiscal fourth quarter of April - June 07 and have hit a high of $9.36 during the current fourth-quarter.

According to a recent Sun filing, chief executive Jonathan Schwartz tried - and failed - to haggle up Oracle president Safra Catz from the $9.50 proposal.

Sun, meanwhile, has estimated what senior management's severance package will look like.

Schwartz will get a $12m package that includes $9m in pay; McNealy $9.5m including $7.5m in pay; executive vice president of systems John Fowler $3.3m, including $2.3m pay; executive vice president for application platform software Anil Gadre $2.7m, including $2.08m in pay; and chief technology officer and executive vice president of research and development Greg Papadopoulos $3.7m, including $2.8m in pay.

These severance benefits will come into effect should they leave Sun either voluntarily or involuntarily - read resign, fired, or laid off - 12 months after the deal.

Bootnote

Java users don't get a golden parachute from the Oracle, but they can - and are - looking for ways to avoid becoming beholden to a single company for their entire middleware, business applications, and hardware. They are investigating Red Hat and JBoss.

Listen to what Oracle's acquisition of Sun means to Java users and Oracle customers in The Scoop, from Australia's MIS Financial Review. Reg software editor Gavin Clarke joins show-host Mark Jones, Unico CTO Peter Evans-Greenwood, and Enterprise Java user group president Rob Janson to discuss a software deal that quickly mushroomed into a bid for the whole of Sun. The Scoop is available here.

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.