Report: Oracle Considering Hostile Takeover of HP

| Rumor

OracleClaiming a variety of unnamed and unspecified sources, The New York Post reported that enterprise software giant Oracle is considering a hostile takeover of mid-life crisis computing firm HP.

The story is predicated on the idea that with the recent stock sell-off that accompanied HP’s announcement that it would spin off or sell its PC division (the Personal Systems Group, or PSG), HP is ripe for a takeover, especially when you toss in the Palo Alto company’s plans to spend US$10 billion on enterprise software company Autonomy.

HP (HPQ) was trading at $32.67 per share on Tuesday, August 16th, and closed at $24.45 on Monday, a 25.2% decline.

Add to that the reality that if HP is successful in dumping its PC business, the company becomes even more compelling for Oracle, which has no interest in that business. Oracle already makes hardware for the enterprise space under its Sun brand, which it acquired in 2009.

Another element is that former HP CEO Mark Hurd is one of Oracle’s executives, meaning that Oracle CEO Larry Ellison has an inside man on his team who understands the company better than most other people on the planet.

The source of this latest rumor is an unnamed source “close to the matter” who said that, “If that stock keeps dropping, I think [a takeover] is inevitable.” That source also believes that Oracle would then spin off HP’s very profitable printer business.

The source added, “Perhaps in three years [the Autonomy acquisition] will turn out to be a smart acquisition. But the reality is in nine months HP will likely be defending itself in an Oracle fight.”

The Post also cited an unnamed banker who also believes that Oracle will make a hostile takeover bid for HP, but that it will happen further out than the other unnamed source’s timetable.

Finally, an unnamed “antitrust source” said that such an acquisition would likely pass regulatory hurdles, though some concessions might be required. There is no indication of whether this is a source inside the U.S. Department of Justice or some outside party.

The Post, a News Corp. holding, did not specify whether or not it used any information gained from hacked voicemail accounts.

Comments

1stplacemacuser

The Post, a News Corp. holding, did not specify whether or not it used any information gained from hacked voicemail accounts.

Heh heh.

I like that.

BurmaYank

The Post, a News Corp. holding, did not specify whether or not it used any information gained from hacked voicemail accounts.”

1stplacemacuser:

Heh heh.

I like that.

Yeah, me too!

But I expect The Post actually did not get this story from any hacked voicemail accounts, because it never gets any stories from happenings in the real world, and instead only ever uses pure fiction for all its stories IMO.

That’s not to say that The Post doesn’t hack voicemail accounts - I mean, they are a Murdock rag, after all, so why wouldn’t they, just out of habit?

graxspoo

unnamed banker who also believes that HP will make a hostile takeover bid for HP

Taking over your own company, that’s a new one! grin

vaporland

The author of this post was willing to attribute its source to a News Corp outlet, so the least they could do was not bite the hand that (news) feeds them…

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