We are opposed to selling the company at $17.00 per share. We are not opposed to selling the company, BEA’s board of directors wrote in an open letter to Icahn.
The letter came in response to a missive from Icahn last Friday, in which he condemned the board for what he called its management entrenchment tactic of haggling for a $21 a share offer.
Icahn said he was ready to file suit to stop BEA engaging in any scorched earth tactics designed to make the company unattractive to potential acquirers such as Oracle.
It’s far from clear why, or if, Icahn believes BEA’s board would do such a thing, given that it has repeatedly said it is open to being bought, but only at the right price.
BEA stuck to its position yesterday, saying we are prepared to authorize negotiations to sell the company at a price of $21.00 per share and to sign immediately a merger agreement.
Oracle, for its part, let its $17 bid, which valued the company at $6.7bn, expire on Sunday evening, after BEA declined to step up and accept it, and made no further announcements yesterday.
While Oracle is coy on its intentions toward BEA, the company is widely expected to make another move for the troubled middleware vendor.
BEA shares held at $16.50 yesterday, having on Friday dropped below the $17 mark for the first time since the Oracle offer was made three weeks ago.
But the company clung to its position that the $17 offer, which was a 21% premium when it was made, significantly undervalues BEA
The company added: Consistent with our fiduciary duty we will continue to vigorously oppose a sale to Oracle or anyone else at that price in order to protect the interests of all BEA shareholders. The emphasis, given the context, evidently on the word all.
