European Union Mulling Objection to Oracle-Sun Deal

John Paczkowski — Tue, 03 Nov 2009 23:18:54 +0000

Oracle CEO Larry Ellison is famous for his admiration of “The Art of War,” Sun Tzu’s sixth-century treatise on battle tactics. And the ancient wisdom has served Ellison well in Oracle’s long-running battle with SAP and its hostile bid for PeopleSoft. But it may get him in trouble when it comes to Oracle’s (ORCL) dealings with the European Commission and its inquiry into his company’s planned acquisition of Sun (JAVA).

The Financial Times reports that Oracle’s refusal to offer any concessions to European antitrust regulators may lead them to issue a formal statement of objections to the deal. A complaint could come “within days,” sources tell the FT, though they note that it’s possible that one side or the other will back down before a formal complaint is filed.

If an objection is issued, it will inevitably prolong the entire review process, something Oracle and Sun can ill afford. As Ellison himself recently noted, Sun is losing $100 million a month waiting for approval of the deal.

PREVIOUSLY:

I Bet $31-Per-Share Sounds Pretty Good Right About Now, Eh?

John Paczkowski — Tue, 02 Sep 2008 21:32:24 +0000

After enjoying a few brief months of hostile-bid-inspired investor enthusiasm, Yahoo’s share price has resumed the steady decline it’s been charting for some time now.Yahoo closed at $18.75 today. Not only is that the stock’s lowest level in five years, it’s well below the $19.18 it was worth on Jan. 31, the day before Microsoft (MSFT) announced its $31-per-share offer for the company. Funny now to think that Yahoo’s (YHOO) directors argued that that figure “massively undervalued” the company. Funnier still to think that at points during discussions, the Web’s perennial underachiever believed itself to be worth $40 a share.

Digital Daily » hostile bid

European Union Mulling Objection to Oracle-Sun Deal

I Bet $31-Per-Share Sounds Pretty Good Right About Now, Eh?