Oracle says majority of NetSuite holders back acquisition

Sat Nov 5, 2016 10:17am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Reuters) - Oracle Corp (ORCL.N: Quote) said on Saturday its proposed $9.3 billion acquisition of cloud storage company NetSuite Inc N.N will move forward after more than half of eligible NetSuite shareholders backed the bid.

Oracle said in a statement that holders of 53 percent of unaffiliated NetSuite shares agreed to tender their shares by a Friday deadline. The deal will be completed on Monday, Oracle said.

Oracle offered to buy NetSuite in July for $109 a share to respond to challenges from rival enterprise software companies such as Workday Inc (WDAY.N: Quote) and Salesforce.com Inc (CRM.N: Quote) that have popular cloud-based software products.

Investment manager T. Rowe Price, NetSuite's second-largest shareholder behind Ellison, had objected that Oracle's offer was too low and said it would not tender its shares. T. Rowe sent a letter last week to Oracle suggesting the company raise its offer to $133 per share.

As of July, T. Rowe owned 12.2 million NetSuite shares.

NetSuite shares went on a rollercoaster ride ahead of Oracle's Friday offer deadline. On Thursday, NetSuite shares jumped by more than 6 percent before trading was temporarily halted. NetSuite shares fell 3.8 percent on Friday to close at $90.34.

According to terms of the Oracle agreement, a majority of NetSuite's 40.8 million unaffiliated shares, or shares not tied to Ellison and other insiders, had to be tendered to complete the deal.

  Continued...

 
The company logo is shown at the headquarters of Oracle Corporation in Redwood City, California February 2, 2010.   REUTERS/Robert Galbraith