Microsoft to Buy SAP? A 'Random Rumor,' Says Ballmer

Microsoft Corp. (NASDAQ:MSFT) sold a $3.75 billion debt issue in its entrance into the U.S. corporate bond market on Monday, sparking speculation the company may be about to make a large acquisition of, say, SAP AG (NYSE:SAP), the German business software firm.

"It strikes me as a random rumor," Microsoft CEO Steve Ballmer told reporters early Tuesday in Mumbai. "I have nothing to say about rumors of acquisitions ... positively or negatively."

On the topic of layoffs, Ballmer left open the possibility the company would eliminate more than the 5,000 jobs already planned -- a possibility he mentioned to employees last week, leading MediaMemo blogger Peter Kafka to label it "non-news."

"Assuming the economy only stays as bad as it is and doesn't get dramatically worse we will finish our plan," said Ballmer. "But if it gets dramatically worse again, which I guess is conceivable, we will debate again."

Microsoft says the move to sell corporate bonds was motivated by taking advantage of "good market conditions and Microsoft's great credit rating," according to a spokesperson. The company is one of a few U.S. companies still rated AAA by both Moody's Investors Service and Standard & Poor's. Monday's bond sale attracted well over $10 billion in demand, reports Reuters. - Mary Kathleen Flynn