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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?


To: richardred who wrote (2345)9/10/2010 6:27:11 PM
From: richardred  Read Replies (1) | Respond to of 7058
 
Will Cloud Trigger M&A Frenzy?
Published: Friday, 10 Sep 2010 | 5:52 PM ET
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By: Lee Brodie
Producer

Tech investors are growing more excited by ‘The Cloud’ everyday.

What's 'The Cloud?'

It's just a buzz word for the trend toward using Internet based services and storage – and not your hard drive.

The trend is hot because it eliminates the need to download software onto your PC; which in turn frees up memory. In some cases the applications are free, such as Google's calendar function. And in other cases you pay as you go.

Now with that said - Brent Thill of UBS suggests ‘The Cloud” could fuel some M&A frenzy.

What names should be on your radar?

According to Thill, it’s Red Hat [RHT 37.41 0.43 (+1.16%) ] and Citrix [CTXS 63.69 0.90 (+1.43%) ]. “(Both) are both critical to the Cloud,” he tells the desk. “Red Hat is critical to powering a number of the services and Citrix is important for desktop virtualization.”

So who might be on the prowl for these kinds of companies?

”Cisco [CSCO 20.62 0.01 (+0.05%) ], Hewlett [HPQ 38.28 -0.54 (-1.39%) ] and Oracle [ORCL 25.05 0.72 (+2.96%) ] are all very interested in the cloud,” Thill explains. “In fact, Every big tech company is going after the trend as an opportunity.”

But even without a takeout, Thill thinks investors can still make money.

Red Hat and Citrix are two names for the radar regardless, "their already great companies,” he says.
cnbc.com|headline|quote|text|&par=yahoo



To: richardred who wrote (2345)9/10/2010 6:40:27 PM
From: richardred  Read Replies (1) | Respond to of 7058
 
Oracle's Exec Swap Portends Near-Term Change

Mark Hurd is in at Oracle, and Charles Phillips is out. Based on the company's track record, that could signal that a major acquisition or other big move is imminent.

By John Foley
InformationWeek
September 10, 2010 06:10 PM

In hiring Mark Hurd and showing Charles Phillips the door, Oracle CEO Larry Ellison is replacing one type of number cruncher with another. The difference in their areas of expertise may tell us something about the direction Oracle is heading. And history suggests that any changes will come sooner rather than later.

At the time he was hired by Oracle in 2003, Phillips was arguably the industry's leading expert on the commercial software market. As a Morgan Stanley analyst, Phillips had an unparalleled ability to slice and dice a software vendor's quarterly results. He was repeatedly named the No. 1 enterprise software analyst by Institutional Investor magazine, and InformationWeek featured the former Marine on our cover as early as 2000. In fact, Phillips was on InformationWeek's editorial advisory board well before Ellison or President Obama (who named Phillips to his Economic Advisory Board) ever took notice of his analytical prowess.

* Cloud Computing Advocates Detail Its Future

I came across a report deep in my e-mail archive that Phillips authored on PeopleSoft's financial results for the first quarter of 2003 when he was with Morgan Stanley. At the time, PeopleSoft's quarterly license revenues came in $30 million short of expectations. However, Phillips observed that PeopleSoft had closed business in the last week of Q4, pulling what would have been Q1 revenue into the earlier quarter, and he determined that the licensing shortfall was no big deal. In analyzing the company's upgrade cycle, steady demand for HR software, the economy, the outlook among government customers, PeopleSoft's bonus plan, and other factors, Phillips reasoned there was no need for investor concern.

"PeopleSoft is still a franchise company in the enterprise software business with lots of important customers," he wrote. "It's a well managed company with protectable margins in tough times and a product that is difficult to swap out."

Delve into the most strategic technologies for IT leaders
Execs: Sharpen Your IT Skills

The timing of that report, April 2003, is notable. A month later, in May, Oracle hired Phillips as executive VP, reporting to Ellison. And one month after that, Oracle launched a hostile takeover of PeopleSoft, a deal that closed a year later for $10.3 billion, nearly twice the size of its more recent Sun Microsystems acquisition. Since then, Oracle has spent some $40 billion acquiring more than 50 companies.

With Phillips leading its sales, marketing, and vertical industries business, Oracle grew from $9.5 billion in fiscal 2003 to $23.3 billion in fiscal 2009, during which revenues from software and support rose from 76% of overall sales to 80%. This at a time when software as a service and cloud computing threatened its model.

Hurd, meanwhile, is known as an operations guy, someone who makes the tough decisions required to squeeze costs. At Hewlett-Packard, he also managed big acquisitions, including EDS ($13.9 billion), 3Com ($2.7 billion), and Palm ($1.2 billion).

What does Hurd's background portend for Oracle? It suggests that Oracle may be in for another major acquisition (Salesforce? Teradata?), serious cost cutting, and/or stepped up competition with HP and IBM in the computer systems market. As Oracle tries to absorb more than a dozen companies in the past year alone, Hurd may be the ideal person to integrate and, where there's overlap, eliminate.

As we mull the possibilities, it's worth remembering how quickly Oracle acted when Phillips came on board—within a month, Oracle set off on its largest acquisition ever. Assuming HP's breach-of-contract suit (filed Sept. 7 to block Hurd from taking the Oracle job) doesn't stop him, look for Hurd to make his imprint quickly.

As virtual servers, storage, and applications become the norm in the data center, vendors are offering products to consolidate host communications into a single channel and manage that channel with a central appliance. Get the lowdown on the various options before diving in. Download our report here (registration required).
informationweek.com



To: richardred who wrote (2345)9/14/2010 1:42:45 AM
From: richardred  Respond to of 7058
 
Teradata Selected as Foundation for Business Intelligence by Dell
finance.yahoo.com



To: richardred who wrote (2345)9/20/2010 11:26:40 AM
From: richardred  Read Replies (2) | Respond to of 7058
 
Teradata shares jump on M&A speculation
Related stories

SAN FRANCISCO (MarketWatch) -- Shares of Teradata Corp. /quotes/comstock/13*!tdc/quotes/nls/tdc (TDC 38.03, +3.56, +10.33%) jumped more than 10% to $38.09 in early trades Monday after an analyst speculated that the data storage company could be a takeover candidate. The speculation came after IBM /quotes/comstock/13*!ibm/quotes/nls/ibm (IBM 131.32, +1.13, +0.87%) announced plans to buy peer Netezza /quotes/comstock/13*!nz/quotes/nls/nz (NZ 27.65, +3.05, +12.40%) for $1.7 billion. "We consider Teradata a logical potential target as well; a bigger vendor with more of a services component but also one with successful data warehouse appliance offerings," wrote Nathan Schneiderman of Roth Capital Partners.

marketwatch.com



To: richardred who wrote (2345)11/26/2010 11:35:51 PM
From: richardred  Respond to of 7058
 
More potential cash for ORCL's war chest.

Jury: SAP must pay nemesis Oracle $1.3 billion
By Associated Press ,

SAN FRANCISCO (AP) — Oracle Corp.'s courtroom clash with archenemy SAP (News - Alert) AG has paid off handsomely.

A jury on Tuesday ordered SAP to pay $1.3 billion — more than half of its total profit last year — for a subsidiary's skullduggery in stealing a stockpile of software and customer–support documents from password–protectedOracle ( News - Alert) websites.

The German software company was caught off guard by the size of the verdict. It had only set aside $160 million for anticipated damages, and already paid $120 million of that to Oracle's lawyers.

The penalty is one of the largest on record for software piracy, and has the potential to reshape the business software landscape because of the extent of the damage to the pocketbook and reputation of one of its biggest players.

The verdict came after less than a full day of jury deliberations, and followed a three–week trial that turned into a Silicon Valley sideshow.

Stoking the drama were colorful public provocations by Oracle's outspoken CEO Larry Ellison (News - Alert), the looming possibility of a crushing verdict against a company that makes ubiquitous business software, and the specter of Silicon Valley's most elusive new celebrity, Hewlett–Packard Co. CEO Leo Apotheker.

In the end, Oracle turned the trial into a double feature: a grinding attack on SAP, whose dominance in business applications is under assault from Oracle, and HP, another technology industry heavyweight with which Oracle shares a decades–long partnership that is now coursing with bad blood.

"For more than three years, SAP stole thousands of copies of Oracle software and then resold that software and related services to Oracle's own customers," Oracle co–president Safra Catz said after the verdict. "Right before the trial began, SAP admitted its guilt and liability. Then the trial made it clear that SAP's most senior executives were aware of the illegal activity from the very beginning."

Representatives of SAP, which is based in Walldorf, Germany, expressed disappointment and said the company will "pursue all available options, including post–trial motions and appeal if necessary."

If the size of the punishment is ultimately allowed to stand, SAP's takeover in 2005 of a small software–support firm called TomorrowNow, which dragged the company into this mess, will end up costing SAP significantly more than the $10 million it paid for the acquisition.

"This will unfortunately be a prolonged process and we continue to hope that the matter can be resolved appropriately without more years of litigation," SAP said in a statement. "The mark of a leading company is the way it handles its mistakes. As stated in court, we regret the actions of TomorrowNow, we have accepted liability, and have been willing to fairly compensate Oracle. ... Our focus now is looking forward."

SAP faces another potential problem as well. It previously disclosed that the U.S. Department of Justice is investigating the matter.

It's difficult to think of a more thorough legal victory for a software maker pursuing a copyright infringement claim, said Santa Clara University law professor Eric Goldman.

Besides collecting the damages, Oracle was able to publicly humiliate one of its biggest rivals while making another competitor, HP, squirm as it skirted questions concerning the whereabouts of its new CEO, Leo Apotheker. Oracle repeatedly tried to serve a subpoena on Apotheker, a former CEO and top sales executive at SAP, but couldn't find him within the jurisdiction of the Oakland federal court.

"Oracle has always dreamed big in this case and all their dreams came true," Goldman said. "It just turned out to be a real windfall for them."

SAP boxed itself into a corner by admitting it had trampled on Oracle's copyrights before the trial began. That left SAP with little to do but plead for leniency and "it turned out to be a tough sales pitch," Goldman said. "This was just a bad case for SAP, up and down the board."

Oracle, based in Redwood Shores, is the leading maker of database software, which helps companies organize their information. Its aggressive expansion into business applications has forced Oracle into a faceoff with SAP, the leader in that space.

HP was a late addition to the dustup: After HP's former CEO, Mark Hurd (News - Alert), was ousted in August in the wake of a sexual harassment investigation, Oracle hired Hurd, HP hired Apotheker, and Ellison used both of HP's decisions as reasons to blast the company.

At the heart of Oracle's claim against SAP was a series of golden gotcha moments, in which Oracle noticed unusual behavior on secured websites it maintained to help customers solve problems, and uncovered a scheme in which an extraordinary amount of software and documents were being plundered and shipped back to TomorrowNow servers.

Oracle technicians spotted the scam by investigating accounts that were registered with clearly bad information (such as phone numbers like "777–7777") and user names seemingly connected to the SAP subsidiary (names such as "Tom Now").

SAP admitted that the now–shuttered subsidiary was secretly siphoning off instruction manuals and technical specifications for Oracle's software. But its lawyers argued that Oracle's claims of injury were exaggerated.

Oracle demanded billions based on its estimate of the value of its intellectual property and business it lost.

SAP posited that TomorrowNow actually wasn't that good at stealing customers from Oracle, and that SAP should only pay for money it made from the 358 customers it gained with the stolen data.

The jury sided with Oracle's argument that the value of its intellectual property is vast, and that aggressively enforcing copyrights is critical to nourishing a healthy technology industry and funding innovation.

SAP conceivably could ask the judge to lower the damages determined by the jury, but that is usually a difficult argument to win, Goldman said.

"The size of this verdict further reduces SAP's flexibility," he said.

SAP shares fell 67 cents, or 1.4 percent, to $48.02 in extended U.S. trading, after the verdict was announced. The stock had fallen 71 cents, or 1.4 percent, to finish the regular trading session at $48.69.

Oracle shares rose 37 cents, or 1.4 percent, to $27.56 in extended trading, after falling 86 cents, or 3.1 percent, to finish the regular session at $27.19.

___

AP Technology Writer Michael Liedtke contributed reporting from San Francisco.
topnews360.tmcnet.com



To: richardred who wrote (2345)12/22/2010 11:55:07 AM
From: richardred  Respond to of 7058
 
UPDATE 3-Teradata to buy cloud software firm Aprimo for $525
By Himank Sharma and Saqib Iqbal Ahmed

BANGALORE, Dec 22 (Reuters) - Enterprise data warehousing company Teradata Corp (TDC.N) agreed to buy privately held Aprimo for $525 million to expand into cloud software services, as it gears to meet challenges from larger rivals IBM (IBM.N) and Oracle (ORCL.O).

Indianapolis-based Aprimo provides software to its enterprise customers, who use it to analyze data to map out their marketing and advertising efforts.

Cloud computing -- a technology that allows users to access data, software and services over the Internet and corporate networks -- is being touted as the next big trend in the technology sector.

Companies like Teradata, Oracle, EMC Corp (EMC.N) and IBM are shifting their focus from increasingly commoditized hardware to higher-margin software and services, particularly analytics, which help clients analyze market data to plot trends or prevent fraud.

Teradata's peers -- Netezza Inc and 3PAR -- have been snapped up in recent months by IBM and HP (HPQ.N) respectively.

The Aprimo deal follows IBM's $480 million purchase of marketing software firm Unica Corp, Aprimo's rival, in October. [ID:nN13175286]

BRANCHING OUT

The Aprimo buy appears to be "uncharacteristic" of Teradata, Susquehanna Financial analyst Derrick Wood said.

This acquisition puts Teradata more into application space instead of just a database provider, Wood said.

"As competition in Teradata's core market intensifies, it is looking towards related markets to branch out and diversify its total revenue," Wedbush Securities' Michael Nemeroff said.
reuters.com



To: richardred who wrote (2345)3/13/2011 12:36:57 PM
From: richardred  Respond to of 7058
 
HP shares could rise on move into software-Barron's



NEW YORK, March 13 | Sun Mar 13, 2011 11:44am EDT

NEW YORK, March 13 (Reuters) - Hewlett-Packard Co (HPQ.N) is expected to unveil a plan that emphasizes software over hardware in a move that could send its shares significantly higher, according to a report in Barron's financial newspaper.

HP, which has lagged behind rivals in the software business, is likely to increase its software holdings through acquisitions, according to the report.

Cowen and Co analyst Peter Goldmacher suggested that HP should buy Red Hat Inc (RHT.N), which sells open-source Linux products and has a market value of $7.8 billion.

Other potential HP takeover targets cited in the article include Symantec Corp (SYMC.O), Teradata Corp (TDC.N), Informatica Corp (INFA.O), BMC Software Inc (BMC.O), CommVault Systems Inc (CVLT.O) and Tibco Software Inc (TIBX.O).

If new HP Chief Executive Leon Apotheker can successfully implement the software plan, Barron's said in its March 14 edition, its shares could reach the $60s range in a year.

HP's shares closed at $41.73 on the New York Stock Exchange on Friday. (Reporting by Bill Berkrot, editing by Maureen Bavdek)
reuters.com



To: richardred who wrote (2345)5/2/2011 10:27:53 AM
From: richardred  Respond to of 7058
 
Sold-TDC-TERADATA-:+ )- For myself anyway. When the price of the stock you bought exceeds your takeover expectations. I think it's time to sell.