BEA to Icahn: We'll Sell, But Not for $17/Share

BEA Systems' board of directors responded to activist investor Carl Icahn's repeated calls for the company to sell itself in a letter Monday morning, saying it was not opposed to a sale, but felt Oracle's $17/share offer which expired over the weekend undervalued the company. "The Board and management of BEA Systems are not opposed to an acquisition of the company. In fact, we are currently exploring ways to maximize shareholder value, including the possible sale of the company. The reason that Oracle’s $17.00 per share proposal is unacceptable to the Board is because it significantly undervalues BEA, and consistent with our fiduciary duty we will continue to vigorously oppose a sale to Oracle or anyone else at that price in order to protect the interests of all BEA shareholders." The board reiterated its willingness to sell the company at $21/share, a price ridiculed by Oracle, calling it "impossibly high," (full story). Jefferies analyst Katherine Egbert said in a note it's likely BEA's estimate of $21/share means they have had interest from other parties.

Sources: Press release
Commentary: BEA Sets $21/Share Takeout Price, Oracle Rejects • BEA's Ball Rolls Into Icahn's Court
Stocks to watch: BEAS, ORCL
Earnings call transcript: BEA Systems F2Q08 (Qtr End 7/31/07), Oracle F1Q08 (Qtr End 8/31/07)

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Comments

[Burns:]

If BEA had another interested party, then why haven't they made their interest known yet? This way, BEA could hope to start a bidding war between Oracle and Company X and hopefully come out way ahead. I don't think BEA has another interested buyer, and in a few days after Icahn's lawsuit (not to mention the law suits from angry investors) BEA will be running back to Oracle to ask them if the offer is still on the table www.newsvisual.com/new...

2007 Oct 29 11:08 AM