SAN FRANCISCO — Business software maker Oracle Corp. said Tuesday it would bid $525 million for Retek Inc. as it attempts to prevent the company from being sold to one if its fiercest rivals, Germany-based SAP.
Redwood Shores-based Oracle said it will offer $9 per share for Minneapolis-based Retek this morning, hoping to persuade
its takeover target to reconsider a $496 million, or $8.50 per share takeover agreement from SAP.
Retek announced that it had accepted SAP's offer last week, prompting Oracle to jump into the fray even as it continues to digest its recently completed $10.3 billion acquisition of PeopleSoft Inc.
SAP spokesman Jim Dever declined to comment Tuesday
on Oracle's move. Retek didn't immediately return a phone message.
Oracle chief executive Larry Ellison has made no secret of his desire to expand the company's market share by buying even more companies, but recently indicated he probably would wait until management delivered on the financial promises made as part of the PeopleSoft takeover.
SAP's deal with Retek, though, threatened to make it more difficult for Oracle to realize its goals, prompting Ellison to start a bidding war.
"We intend to defend our number one position" in the North American market for business applications software, Ellison said in a statement Tuesday.
Oracle said it has already bought 5.5 million shares,
or nearly 10 percent, of Retek's stock.
Retek primarily sells its software to retailers. The company, formed in 1986, generated revenue of $174 million last year from about 200 customers.
Oracle shares rose 2 cents to close at $13.62 on the Nasdaq Stock Market on Tuesday. In after-hours trading, the shares fell 12 cents to $13.50.
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