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BEA shares slump after Oracle war

Oracle Corp. Chief Executive Larry Ellison (opens in new tab) revealed that the company is in acquisition mode as it looks for other potential companies to buy after it failed to acquire BEA Systems.

The news caused BEA shares (opens in new tab) to dive by nearly 5 percent to USD 16.54 yesterday afternoon although it did pick up slightly afterwards boosted by the news of a 59 percent increase in profits. (opens in new tab)

The push in profit which came as BEA systems released its first audited figures after four quarters showed some optimistic forecasts as well with estimated Q4 revenues hovering around USD 425m.

Oracle original offer was USD 17 per share but the BEA board asked for USD 21, slapping a USD 8.2 bn market capitalisation price on the company.

Now Larry Ellison is saying that, even if BEA put a "for sale" sign outside the business, Oracle would propose less than USD 17 for a BEA share.

The Oracle boss argues that Oracle (opens in new tab) is doing very well on its own and that the main reason for the purchase was to allow Oracle to scale up nicely, rather than use BEA portfolio and technology.

BEA is one of the prominent actors (opens in new tab) in the Business Intelligence (BI)/Middleware segment, the layer that allows business applications to interact more efficiently and effortlessly with databases.

Désiré Athow
Contributor

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.