Icahn seeks BEA auction
Investor Carl Icahn sued BEA Systems, the software maker that spurned a $6.7 bn offer from Oracle, demanding that the company hold an annual meeting and allow shareholders to vote on a sale.
By Agencies |
SAN FRANCISCO: Billionaire investor Carl Icahn sued BEA Systems, the software maker that spurned a $6.7 billion offer from Oracle, demanding that the company hold an annual meeting and allow shareholders to vote on a sale. Icahn, BEA’s largest shareholder, said Friday that the company should put itself up for auction. The lawsuit asks for BEA, which is seeking an offer of more than $8 billion, to hold an annual meeting by November 30.
“They should have a fair auction process and let the best bid go to the shareholders, and not do anything to thwart that process,” Icahn, 71, said.
The lawsuit, along with a letter Icahn sent to BEA’s board, steps up pressure on the company to accept Oracle’s offer or find a higher bid. BEA’s software license sales fell 11% in the six months ended July 31. The company is counting on its profitable software-maintenance fees to lure suitors.
Icahn said the lawsuit is designed to prevent BEA from taking any action that may derail a sale, such as issuing stock or selling assets. BEA spokesman Andrew Cole declined to comment.
In the letter, Icahn said BEA’s counteroffer price is a “management entrenchment tactic, not a negotiating technique”. The company is at a “critical juncture” with a “holdover” board, he said. Buying BEA would help Oracle challenge IBM for the market lead in middleware, software that helps different types of programs share information. Oracle chief executive officer Larry Ellison said last month that he aims to “beat IBM” in middleware sales.
“They should have a fair auction process and let the best bid go to the shareholders, and not do anything to thwart that process,” Icahn, 71, said.
The lawsuit, along with a letter Icahn sent to BEA’s board, steps up pressure on the company to accept Oracle’s offer or find a higher bid. BEA’s software license sales fell 11% in the six months ended July 31. The company is counting on its profitable software-maintenance fees to lure suitors.
Icahn said the lawsuit is designed to prevent BEA from taking any action that may derail a sale, such as issuing stock or selling assets. BEA spokesman Andrew Cole declined to comment.
In the letter, Icahn said BEA’s counteroffer price is a “management entrenchment tactic, not a negotiating technique”. The company is at a “critical juncture” with a “holdover” board, he said. Buying BEA would help Oracle challenge IBM for the market lead in middleware, software that helps different types of programs share information. Oracle chief executive officer Larry Ellison said last month that he aims to “beat IBM” in middleware sales.
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