French firm Business Objects reported this morning that its board of directors has recommended a 4.8-billion euro ($6.9 billion) buyout bid from German software giant SAP . In a statement, Business Objects said, The board members unanimously determined that the financial terms of the offers are fair, and the offer is in the company's and its employees' interest. A draft prospectus on the bid has been made available.

BOBJ shares spiked higher on October 8, the day that SAP initially extended the offer. Since then, the stock has edged sideways into support from its 10-day moving average.

Despite the fact that BOBJ is trading very near its 42 euro-per-share acquisition price, option traders have stocked up on bearish bets. The stock's Schaeffer's put/call open interest ratio of 1.38 is at an annual high. In the newly front-month November series, peak put open interest lies at the deep-out-of-the-money 45 strike, with 5,868 contracts outstanding.