BEA fights with Carl Icahn

Filed under CRM News

Carl Icahn, BEA Systems Inc.’s largest shareholder and activist investor seem to have a possible battle with BEA, itself.
Why? Because BEA’s board hinted at talks with other suitors, assuring Icahn “we are currently exploring ways to maximize shareholder value, including the possible of the company”.
It seems that not only Oracle Corp. wants to buy BEA and its line of “middleware”, but also IBM and Hewlett Packard has joined the “fight”.

Carl Icahn- BEA’s largest shareholder and activist investor

BEA’s board sent a letter to Icahn, where they “proposed” him to sell the San Jose- based company for $21 per share, what means $1.5 billion more than Oracle offered before.
IBM Corp. and Hewlett Packard Co. are two other candidates, besides Oracle ready to buy BEA, but both have declined to comment on these speculations.
In another letter, Icahn threatened to wield his 13.2 percent stake in BEA to lead a shareholder rebellion aimed at ousting the company’s directors, unless the board budges from it $21 per share asking price.
BEA stocks are already down because of Oracle’s rebuff, from $18.94 to $16.50 per share.
BEA is in one “crazy” position, with two billionaires: Icahn and Oracle Chief Executive Officer Larry Ellison.
Icahn began pushing for a sale of BEA last month, shortly after divulging he had accumulated a large stake in the slumping company.
Ellison has also pounced on BEA with an offer of 25 % premium above BEA’s stock price of $13.62, before the bid was revealed.
BEA refused Oracle’s bid, considering it as inadequate, an opinion that Icahn, initially approved.
With BEA refusing to discuss any offer below $21 per share, Oracle retracted its $6.7 billion bid Sunday and warned it might not be back. But analysts believe that Oracle is hopping to buy BEA as cheaply as possible, because Oracle can pay from $20 to $27 per share and still make money off the deal.
Ellison told that BEA don’t worth more than $6.7 billion because of its accounting problems and because its sales have sagged.
Icahn is encouraged by Oracle to remove BEA’s directors, and this is normal… for them!
We will see who will win!