Should Oracle Be Forced to Pay More for Acme Packet?
Mar 4th 2013 8:00PM
Updated Mar 4th 2013 8:04PM
Hopes of a bidding war for Acme Packet are fading fast. The stock is now trading below Oracle's $29.25 a share offer, which was made at the beginning of February. At least one investor thinks the database king should be forced to pay more.
In a lawsuit filed in a Delaware court, Willard Love accuses Acme Packet's board of failing in their fiduciary duty to procure a fair offer for shareholders. Specifically, Love says that Oracle's bid comes at an "opportune time," with Acme's otherwise well-positioned business weakened by spending cuts among the carriers that are its primary customers.
Is that a fair assessment? Is Oracle getting Acme Packet on the cheap, or taking a risk buying a business that has yet to demonstrate a sustainable edge? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these questions and more in the video below. Please watch, and then be sure to leave a comment to let us know what you think.
Troubled by these stocks? There are plenty more opportunities out there. In fact, The Motley Fool's chief investment officer recently selected his No. 1 stock for the next year. Get all the details in our brand-new free report: "The Motley Fool's Top Stock for 2013." Your copy is free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.
The article Should Oracle Be Forced to Pay More for Acme Packet? originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Oracle. Motley Fool newsletter services have recommended buying shares of Acme Packet. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.