So I was considering taking a long position in a company called BEA Systems. For techie junkies in the know, BEA is the company that makes WebLogic application server, which arguably is #1 or #2 in the field (depending on who you talk to) next to IBM websphere. The product (which I've used in the past) is actually pretty good. The problem with BEA is the app server market saturated and they're attempts to move into other areas (WLI/SOA), pretty much didn't happen: they're other product suites stink.
Where things get interesting is that apparently Carl Icahn has taken in interest in this company, as he wants to chop this company into itty bitty pieces. Bad news for employees, but potential upside for shareholders. Here's going against the current board/management, and has already raised his stake 3 times (currently at 11.05%)
1) Oct/3/07 Billionaire investor Carl Icahn has boosted his stake in BEA Systems Inc (BEAS.O: Quote, Profile, Research) to 11.05 percent
2) 9/28/07 NEW YORK (AP) — Billionaire activist Carl Icahn on Thursday raised his stake in software maker BEA Systems Inc. to 9.9 percent, or a total of 38.7 million shares, according to a regulatory filing.
3)Initial stake at 9%.
Although Billionaire investors have been wrong in the past too, I was thinking perhaps riding on their coattails might not be such a bad idea. Case in point GM stock with Keokorian.
Note: Icahn also has a stake in Motorola, which I suspect he wants to chop up into itty bitty pieces too.
Well folks, looks like it turns out for BEA, it wasn't exactly the results I wanted. Carl Icahn didn't exactly gain control and chop the company up into little pieces to drive up the stock price.
On the other hand, oracle announced today that it wanted to buy BEA at $17.
I'm selling in the pre-trading session, like NOW!.
32% in two weeks, not bad i guess.
I think there will be other software company consolidation this year. There are too many independents flying around. Again, bad for employees, opportunities for speculators.
I find it also ironic that while some think Larry E. (Oracle CEO) is the devil in disguise (especially his famous quote claiming the difference between God and Larry is that God doesn't run Oracle), oracle's offer is …. yup $6.66 billion
Carl Icahn, however, get's to pocket $200+ million from the flip. I'm soooo jealous.
Hey Carl, you got what you wanted out of BEA, would you now go work on Motorola, which you also have a stake in????
Well folks, looks like it turns out for BEA, it wasn't exactly the results I wanted. Carl Icahn didn't exactly gain control and chop the company up into little pieces to drive up the stock price.
On the other hand, oracle announced today that it wanted to buy BEA at $17.
I'm selling in the pre-trading session, like NOW!.
32% in two weeks, not bad i guess.
I think there will be other software company consolidation this year. There are too many independents flying around. Again, bad for employees, opportunities for speculators.
I find it also ironic that while some think Larry E. (Oracle CEO) is the devil in disguise (especially his famous quote claiming the difference between God and Larry is that God doesn't run Oracle), oracle's offer is …. yup $6.66 billion
Carl Icahn, however, get's to pocket $200+ million from the flip. I'm soooo jealous.
Hey Carl, you got what you wanted out of BEA, would you now go work on Motorola, which you also have a stake in????
.