UPDATE: JP Morgan Downgrades Taleo to Neutral

JP Morgan reduces its rating on Taleo

to Neutral from Overweight following acquisition announcement by Oracle. It raises its price target to $46 from $38 to reflect the offer price. JP Morgan says, "Yesterday, TLEO announced it had entered into a definitive agreement to be acquired by ORCL for $46.00 per share in cash, or approximately $1.9 billion net of TLEO cash. This represents a 39.6% premium to TLEO's unaffected share price prior to SAP's announcement that it was acquiring TLEO competitor SuccessFactors, and an 18.1% premium to TLEO's prior day closing share price. The transaction is expected to close in mid-2012, according to the companies." TLEO closed at $45.64 a share on Thursday.