NetSuite shareholder opposes Oracle takeover

Thursday 8 September 2016 | 12:16 CET | News

The largest minority shareholder in NetSuite, T. Rowe Price announced that it plans to oppose the company's proposed takeover by Oracle. NetSuite published a letter received from the shareholder outlining its concerns about the conflict of interest created by Oracle's existing large stake in NetSuite, which has led to a lower value for NetSuite than its peers. Furthermore, the Oracle bid does not take into account potential synergies from the integration of NetSuite, and Oracle's existing stake in the company may be scaring off rival bidders, the letter said

T. Rowe Price called for the company to subject the bid to a vote by shareholders unaffiliated with Oracle. Until then it does not plan to tender its shares in the offer by the 15 September deadline. 

NetSuite said it met with T.Rowe Price to discuss the concerns, but still recommends the Oracle offer to shareholders. The bid is conditional on a majority of shares not held by Oracle and its affiliates to be tendered. 

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