By Dawn Kawamoto, 18 March 2005 10:05
NEWS p>Oracle upped its takeover bid for Retek to $11.25 late on Thursday, a move that comes less than 24 hours after competitor SAP raised its offer price for the retail software applications company.
Investors had largely expected Oracle to increase its previous offer of $9 a share, after SAP raised its bid to $11 a share earlier in the day. Retek, in announcing SAP's increased offer, asked its shareholders to accept the bid.
But shares of Retek continued to climb throughout the day, closing at $11.65 during the regular session, up nearly 11 per cent from the previous day.
In addressing Oracle's latest bid, Larry Ellison, the company's chief executive, said in a statement: "We intend to defend our number one position [in North America]. Customers have told us they want Oracle to buy Retek."
With Retek's shares trading at a premium above Oracle's latest offer, it remains to be seen whether SAP will up the ante again or walk away from the table.
Analysts have previously said they believe SAP and Oracle are capable of indulging in paying high premiums, given that they view Retek as a strong entry into the retail software applications market.
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