ORCL to buy REDB??
Friday May 16 4:11 PM EDT
Oracle Corp to license technology
LOS ANGELES, May 16 (Reuter) - Oracle Corp is set to expand its product
offering to the downstream oil industry by licensing a technology from
annother company, analysts said Friday.
Oracle told analysts at a breakfast Thursday that it would acquire the
technology for an unnamed company in exchange for a small royalty payment,
said Jim Moore, an Alex Brown analyst who attended the meeting.
The licensing deal is in keeping with Oracle's strategy to expand by
developing applications that target different industries.
"This deals with refining, transportation and by-products and it is a very
sophisticated application that is very hard to put together, so they decided
to license it," Moore said.
Analysts could not confirm published reports, which followed the meeting,
that Oracle might be planning to acquire Red Brick Systems .
"There is no way Oracle would buy that company," said one analyst who asked
not be named. "That would not add anything to what Oracle has. Red Brick
doesn't offer Oracle anything."
Jim Mendelson, an analyst at SoundView Financial Corp who attended the
meeting with Oracle, said he heard no mention of a possible bid for Red
Brick.
Red Brick said a buyout by Oracle was not likely.
"I've heard absolutely nothing about the potential for them to make any kind
of a bid," said Mark Olson, a spokesman for Red Brick. |
