BEA Systems to Oracle: We are worth more than $17 per share

By Lisa Kerner

Charlotte, N.C., Oct. 23 - BEA Systems, Inc. said once more that the $17-per-share unsolicited offer by Oracle Corp. for the company is not in the best interest of BEA shareholders.

The company believes BEA is worth "significantly more than $17 to Oracle, to others, and most importantly to BEA shareholders," according to an Oct. 23 letter sent by BEA to Oracle president Charles Phillips.

The letter was included in a BEA news release and was in response to an earlier communication from Oracle to BEA.

"Despite your statement that Oracle will withdraw its proposal, we simply cannot accept an offer that seriously undervalues BEA," BEA vice president William Klein said in the letter.

"If Oracle is genuinely interested in acquiring BEA, you are fully capable of proposing a reasonable price to the BEA board or taking any offer you wish directly to BEA shareholders."

It was previously reported that BEA rejected Oracle's offer price, which at the time was a 25% premium over BEA's closing price of $13.62. In addition, because Oracle is a direct competitor, BEA said it could not consider any process that is long in duration, is open-ended in nature or would divulge competitively sensitive information.

BEA 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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