bloggingbuyouts

On Monday, Jim Cramer suggested to quickly buy business software maker BEA Systems before it gets a bid. Today, Oracle (NASDAQ: ORCL) indeed said it has proposed to buy BEA Systems (NASDAQ: BEAS) for more than $6.66 billion, or $17 a share, a 25% premium over Thursday's close. Yet, BEA shares are up over 32% to more than $18, suggesting shareholders expect an even higher bid to come.

SAP (NYSE: SAP) acquired Business Objects (NASDAQ: BOBJ) on Monday. Following the deal, many pundits, including Cramer, called the market of business intelligence hot. So the question now is how hot? Will BEA Systems see a proposal from SAP as it wants to give an answer to its rival's growth and thwart its plans for more? Maybe from International Business Machines Corp. (NYSE: IBM), as it might try to halt Oracle's advance into an area it is now dominant in, the middleware programs that connect server computers? Will Oracle simply increase its own proposal despite Oracle President Charles Phillips saying his company has made a "serious proposal including a substantial premium for BEA."

Despite BEA sales declining, now trailing IBM's, no doubt Oracle could use BEA's footprint in the middleware software biz, not to mention access to more customers. Perhaps it could lure some of those BEA customers that are now using SAP. BEA would also bring support fees. These are all good reasons for Oracle, which has grown remarkably well by growth (PeopleSoft notwithstanding).

No doubt, the signs were there. First, Carl Icahn had recently announced his stake in BEA Systems reached 13.22%. Of course, the line BEA executives have often used, "BEA is not for sale," is pretty much meaningless now with Icahn in the picture. Icahn has been pushing to have BEA sold. Then, SAP acquired Business Objects and pundits started calling for consolidation in the business, with BEA being on the short list. If you had listened to Cramer on Monday, you could have sold your BEAS shares 32% higher today. Not bad for a week.