One week after SAP agreed to buy retail software maker Retek, Oracle jammed a wrench in the works, announcing plans to outbid its rival.
Oracle Chief Executive Officer Larry Ellison sent a letter to Retek's board of directors on Tuesday saying that on Wednesday morning Oracle will commence a cash tender offer of $9 per share for all outstanding shares of Retek. SAP last week agreed to buy Retek through a cash tender offer of $8.50 per share, a deal SAP valued at $496 million.
"Oracle's applications business in North America is larger than SAP's. We intend to defend our number one position," Ellison said in a press release.
A U.S. spokeswoman for Walldorf, Germany-based SAP said the company is evaluating the situation and does not yet have any comment. A Retek representative was not available for comment.
SAP said last week that buying Retek would help it offer a comprehensive software system that extends from point of sale through the entire retail supply chain. The deal was approved by Minneapolis-based Retek's board of directors, and was expected to close in early April, pending regulatory approval.
Oracle said Tuesday that it has purchased 10 percent of Retek's outstanding shares in the past two days. Oracle has already drafted joint product road maps and would add Retek's products to Oracle's E-Business Suite portfolio, Ellison said in his letter to Retek's board.
Prior to Oracle's offer, Retek shares (RETK) ended Tuesday trading on the Nasdaq exchange at $8.59. Before SAP's offer on Feb. 28, Retek shares closed in their previous trading session at $6.00.
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