Icahn threatens suit against BEA over rejected Oracle bid

In a BloggingStocks.com entry this morning, Douglas McIntyre posits that BEAS's counter-offer of $21 per share was a negotiating tactic albeit a failed one. "It appears that BEA gambled and lost," he says. BEAS "must have believed that Oracle would raise its bid to lock in a deal for the company," and the firm is "now left with few if any alternatives. Icahn may be able to force a sale of the company, but the only buyer would appear to be Oracle."

In response to Icahn's statements, the BEA Systems board issued a statement saying that they were "not opposed" to a potential sale of the company, but reiterated its view that Oracle's bid "significantly undervalues BEA" and that its desired price remains at you guessed it $21 per share. Whether or not a suitor will step up to buy at those prices remains to be seen; as McIntyre points out, the shares of BEAS have not tapped the 21 level since January 2002.