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To: Robert Rose who wrote (104041)5/25/2000 12:12:00 PM
From: H James Morris  Read Replies (1) | Respond to of 164685
 
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Walldorf, Germany, May 21 (Bloomberg) -- SAP AG, the world's largest maker of business management software, will invest a ``significant'' amount of money its U.S. rival Commerce One Inc., as the two form a strategic and financial alliance that could boost sales of SAP's new software, the Financial Times reported.

Officials at SAP couldn't be reached to comment on the report, published yesterday. The company said Friday it will make a number of announcements at a conference in Berlin this week.

SAP, hurt by falling sales in the U.S. where it lost a number of employees, has been working to reclaim its image after companies such as Hershey Foods Corp. blamed its software for causing product delivery delays last year.

Under the agreement, SAP would invest an unspecified amount in California-based Commerce One, in which it currently holds 1 percent, the FT said.

SAP expects license sales of its mySAP.com Internet software to rise 50 percent this year, the company told shareholders at a meeting earlier this month. SAP's first-quarter profit fell 43 percent to 56 million euros on costs for the Internet software and an employee bonus program aimed at stemming defections to rivals.

Chief Executive Hasso Plattner said earlier this month that SAP received shareholder approval to raise about 6.1 billion euros ($5.5 billion) by selling new shares to fund U.S. acquisitions.

The alliance could see Commerce One, which makes software used to process purchase orders on the Internet, using SAP software to build and maintain new and existing exchanges, the FT said.

Commerce One, vying with Oracle Corp. and Ariba Inc., is looking to win customers in the business-to-business electronic- commerce market. Royal Dutch/Shell Group and Boeing Co. are among its clients. First-quarter net loss widened to $43.6 million from $12.3 million a year ago.

Shares in the Walldorf, Germany-based company fell 21 euros, or 4.4 percent, to 454 euros, while Commerce One shares rose 7/8, or 2.03 percent, to 44 on Friday.

May/21/2000 6:40 ET