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Oracle Extends Deadline For NetSuite Tender Offer, Declares This To Be The Final Extension

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Oracle Extends Deadline For NetSuite Tender Offer, Declares This To Be The Final Extension
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Oracle Corporation (NYSE: ORCL) has announced that it is extending the expiration date of its tender off to acquire NetSuite Inc (NYSE: N) for $109 to November 4.

This marks the third time Oracle has extended its tender offer for NetSuite.

"This will be the final extension that Oracle is obligated to make under the merger agreement. In the event that a majority of NetSuite's unaffiliated shareholders do not tender sufficient shares to reach the minimum tender condition, Oracle will respect the will of NetSuite's unaffiliated shareholders and terminate its proposed acquisition," said D.A. Davidson in a new analyst note.

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The $109 price target represents an implied forward ev/revenue multiple of 7x, significantly higher than the 4x average seen for acquisitions of public technology companies in last five months.

D.A. Davidson said that it is possible, "but not probable that the bid is raised."

The company has a Neutral rating on NetSuite with a $109 price target. It rates Oracle as a Buy.

At last check, NetSuite was down 0.73 percent at $103.33, while Oracle was down 1.37 percent at $38.09.

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Latest Ratings for N

DateFirmActionFromTo
Oct 2016DA DavidsonDowngradesBuyNeutral
Aug 2016SunTrust Robinson HumphreyDowngradesBuyNeutral
Aug 2016MKM PartnersDowngradesBuyNeutral

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