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by Chris Chiappinelli, MA Editorial Staff Posted on Wednesday, January 16, 2008 4:15:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | After failing to strike a deal in October, Oracle returns to the table and succeeds with a 14% higher offer to buy the middleware vendor. |
| Keywords: | Oracle acquires BEA, Oracle to acquire BEA |
Following up on its earlier but rejected buyout offer, enterprise and database application provider Oracle Corp. today announced that it would buy middleware vendor BEA Systems for $8.5 billion in cash. The agreement comes three months after BEA rejected Oracle's initial offer of $6.66 billion. The October proposal valued BEA at $17 per share, a 25% premium on its $13.62 stock price at the time. Today's offer, which still must meet the approval of BEA's shareholders, raises the per-share price tag to $19.38 — 14% higher than the initial bid. In the wake of the first rebuff, few observers doubted that Oracle — and its tenacious CEO, Larry Ellison — would demure. Many cited hard-fought acquisition negotiations from Oracle's past, including its 2005 takeover of Siebel Systems and its 2004 buyout of PeopleSoft, saying that Ellison, once sold on a strategy, rarely abandons it. [Click to continue] |
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