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Antsy Oracle Sets BEA Takeover Deadline

Software giant demands action on offer

By Jason Farago, Newser Staff

Posted Oct 24, 2007 5:04 AM CDT

(Newser) – Software giant Oracle is growing impatient as it attempts to take over BEA Systems, a smaller and fiercely independent tech organization. Oracle offered on Oct. 9 to buy BEA for $6.7 billion, or $17 a share, which BEA considers too low. But the company hasn't formally rejected the offer, and now Oracle has issued an ultimatum: sign by Sunday or the deal is off, reports the Wall Street Journal.

BEA Systems, a California-based company that produces middleware, the technology that facilitates communication among disparate software programs, has rebuffed Oracle several times before, and its CEO remains committed to independence. But since August investor Carl Icahn has bought up stock to become BEA's largest shareholder, and he's pressuring BEA to sell. If Oracle's deal expires, shareholders could revolt or even sue.

[Images (4)]

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An exterior view of Oracle headquarters is seen in Redwood City, Calif., Wednesday, Sept. 19, 2007. Oracle Corp. is expected to release quarterly earnings on Thursday, Sept. 20, 2007. (AP Photo/Paul Sakuma) (Associated Press)

Oracle CEO Larry Ellison smiles during the Oracle Open World conference in San Francisco, in this Oct. 25, 2006, file photo. (Associated Press)

An exterior view of Oracle headquarters is seen in Redwood City, Calif., Wednesday, Sept. 19, 2007. (Associated Press)

Oracle CEO Larry Ellison smiles during his keynote address at Oracle Open World conference in San Francisco, in this Oct. 25, 2006 file photo. (Associated Press)

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A promotional spot for BEA Systems. Oracle has issued an ultimatum for its proposed takeover. (BEASystemsEMEA (YouTube))

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Antsy Oracle Sets BEA Takeover Deadline