Feeds

Sun rallies investors despite possible Oracle blocker

Golden parachutes readied

Maximizing your infrastructure through virtualization

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.

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.