BEA Systems rejects Oracle, again

By Lisa Kerner

Charlotte, N.C., Oct. 26 - Oracle Corp. said BEA Systems, Inc.'s counterproposal of $21 per share is "an impossibly high price for Oracle or any other potential acquirer" in an Thursday letter to BEA Systems' board of directors.

"The $21 per share price is a multiple of nearly 11 times BEA's last 12 months reported maintenance revenues. Nobody would seriously consider paying that kind of multiple for a software company with shrinking new license sales," the letter, included in an Oracle news release, stated.

Oracle also noted that "no other company has come forward to bid for BEA" and asked BEA Systems to put Oracle's $17-per-share offer to a shareholder vote.

BEA Systems was given a deadline of Sunday to respond after which Oracle "will move on and evaluate other potential acquisitions."

However, BEA Systems replied on Friday, saying the $17-per-share offer continues to be "unacceptable."

"As fiduciaries, our board cannot endorse a proposal that it has concluded significantly undervalues BEA. We therefore assume that your proposal will expire on October 28," BEA Systems wrote in its reply.

It was previously reported that BEA Systems rejected Oracle's $17-per-share offer on Oct. 12.

BEA Systems is based in San Jose, Calif., and makes enterprise application and service infrastructure software.

Oracle is a Redwood City, Calif.-based enterprise software company.

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