Chapter 2: Oracle Bids for Retek
By Stuart Silverman, Publisher, Retail Technology Milestones (www.rtmilestones.com)
Last week SAP offered to buy Retek for $8.50 per share. Now Oracle has stepped in to defend its turf and has upped the bid to $9.00 per share after buying 10 percent of outstanding Retek shares over the last 2 days.
To many in the industry, this deal makes more sense from a technology and architecture standpoint than an SAP/Retek marriage. Retek and Oracle have had working partnerships in place for years and most Retek customers deploy their applications on the Oracle platform. On the other hand, there were many questions raised last week about the integration challenges that SAP would face while trying to bring the applications together.
However, the driving force here is Oracle’s competitive streak and unwillingness to allow SAP to gain any ground in the business applications market.
Moderator’s Comment: What’s next? Oracle has shown how aggressively they will fight when they truly want something, e.g. PeopleSoft. Will SAP rise to
the challenge and enter into a bidding war? Or should SAP pursue another suitor at an uncontested price? –
Stuart Silverman – Moderator