Wednesday, May 27, 2009

What's new on the Oracle/Sun front?

I can tell you from personal experience that it takes a while for these mega-mergers to actually be finalized and get all the stockholder approvals and government approvals and the like. But I figured this was a good time to check on Oracle-Sun progress.

Speaking of stockholder approvals, I found this story from early May:

Sun [revealed] that three "putative shareholder class actions" against the proposed Oracle merger were filed by individual shareholders in late April in Santa Clara County Superior Court.

Here is the specific language from Sun's quarterly report:


Three putative shareholder class actions were filed by individual shareholders on April 20, 2009, April 30, 2009 and April 30, 2009, respectively, in Santa Clara County Superior Court naming Sun and certain of our officers and directors, as well as Oracle Corporation, as defendants. The complaints, which are similar, seek to enjoin the proposed acquisition of Sun by Oracle Corporation and allege claims for breach of fiduciary duty against the individual defendants and for aiding and abetting a breach of fiduciary duty against the corporate defendants. The complaints generally allege that the consideration offered in the proposed transaction is unfair and inadequate. Sun and the other defendants have not yet responded to the complaints.

After the filing of the first lawsuit, the Shareholder Rights Foundation stated the following:

On Monday, April 20, 2009 an investor in Sun Microsystems (NASDAQ: JAVA) has filed a proposed class action lawsuit on behalf of current investors of Sun Microsystems (NASDAQ: JAVA), who purchased their shares before Monday, April 20, 2009 and continue to hold their shares, in the Superior Court of California against Sun and its board of directors over the announced takeover of Sun by Oracle Corporation for $9.50 per JAVA share in cash.

According to the complaint the plaintiff alleges that Sun Microsystems and its board of directors breached their fiduciary duty when they attempt to sell Sun to Oracle under the present conditions. The stock of Sun Microsystems (NASDAQ: JAVA) was trading as high as $10.86 on August 15, 2008 and $16.32 on May 01, 2008.

And of course, it's entirely reasonable to believe that an August 15, 2008 stock valuation should still remain constant in April 2009. Yeah, right.

Moving on...

RedOrbit notes that now is the time to buy - or perhaps not:

Bargain-rate valuations and hopes of economic recovery are enticing cash-rich tech firms to seek acquisitions, with many expecting a string of such deals during the second half of the year.

Leading technology companies such as IBM, as well as boutique players such as NetSuite, have assessed the recession-caused damage to their balance sheets, and are looking towards new growth opportunities.

Oh, and in a nice little coincidence, Larry Ellison co-owns a yacht that is called "Rising Sun." His other yacht is called Dogzilla; does this mean that Ellison will buy a book publisher?

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