This morning, Oracle announced it made a $17 per-share buyout bid to acquire BEA Systems . The price represents a 25% premium to BEAS's close yesterday at $13.62, though the shares of BEA Systems have jumped more than 33% higher to trade above $18 at last check, spiking off support from their 10-day moving average.
The total value of the deal checks in at $6.7 billion, the news of which has sent ORCL to a fractional loss this morning. The acquisition offer comes in the wake of some campaigning by BEAS investor Carl Icahn, who owns an 8.5% stake in the company and supports a sale.
Oracle president Chuck Phillips said, We believe our all-cash offer provides the best value for BEA's shareholders and the best home for BEA's employees and customers. BEAS could get a boost from an unwinding of negative sentiment short interest on the stock swelled by more than 23% during the last reporting period, and its Schaeffer's put/call open interest ratio of 0.61 is just 6 percentage points away from an annual peak.