Rumors: Oracle considering trying to acquire SAP

Rumors: Oracle considering trying to acquire SAP

Rumors in the market suggest that database industry giant Oracle is preparing a bid to take over SAP AG. Market sources say that the company is considering offering 38.5 Euros ($49.78) per SAP share.

This rumor helped the SAP shares gain at the stock market as they went up by around 1.7% by midday, to 36.23 Euros.

However, market analysts believe that such a deal is almost impossible to take place as a combined entity would create a near-monopoly and would face antitrust lawsuits in both Europe and America.

Oracle’s takeover of PeopleSoft three years ago itself was seen as a deal to create a monopoly in the market and the company faced massive antitrust protests from the government bodies.

AMR Research said in a report that SAP controlled 43% of the $29bn worldwide ERP market by the end of 2006. Oracle had a 23% market share. The other two players were Sage and Microsoft with miniscule market share.