Last month, SAP’s North American subsidiary, SAP
Enter Oracle. On Monday and Tuesday of this week, Oracle purchased 5.5 million shares of Retek common stock, representing nearly 10% of total shares outstanding. And now, the company says that it will make a cash tender offer to purchase all of the outstanding shares of Retek at $9 per share – $0.50 a share higher than the SAP offer.
‘Oracle’s Applications business in
In a statement, Oracle said that Retek and itself had been partners since 1986, providing systems to many of the world’s largest retailers. And it was in October 2004, it says, that they began discussions about combining the two companies. It went onto claim that most of Retek’s applications have been built on Oracle’s technology platform using Oracle’s development tools, and approximately 80% of Retek’s customers currently run Oracle’s infrastructure software.
‘The Retek customers I’ve talked to said they’d prefer that Oracle buy Retek,’ said Oracle President, Charles Phillips. ‘The vast majority of Retek customers already have a strong Oracle relationship.’
Oracle has contacted Retek’s management regarding the deal and has given Retek’s Board of Directors the details of its offer.