San Diego Housing Market News and Analysis
OT: Following Billionaire Investor(s) with takeover in mind
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Submitted by Coronita on October 3, 2007 - 5:39am
Just random rambling.
So I was considering taking a long position in a company called BEA Systems. For techie junkies in the know, BEA is the company that makes WebLogic application server, which arguably is #1 or #2 in the field (depending on who you talk to) next to IBM websphere. The product (which I've used in the past) is actually pretty good. The problem with BEA is the app server market saturated and they're attempts to move into other areas (WLI/SOA), pretty much didn't happen: they're other product suites stink.
Where things get interesting is that apparently Carl Icahn has taken in interest in this company, as he wants to chop this company into itty bitty pieces. Bad news for employees, but potential upside for shareholders. Here's going against the current board/management, and has already raised his stake 3 times (currently at 11.05%)
2) 9/28/07 NEW YORK (AP) -- Billionaire activist Carl Icahn on Thursday raised his stake in software maker BEA Systems Inc. to 9.9 percent, or a total of 38.7 million shares, according to a regulatory filing.
3)Initial stake at 9%.
Although Billionaire investors have been wrong in the past too, I was thinking perhaps riding on their coattails might not be such a bad idea. Case in point GM stock with Keokorian.
Note: Icahn also has a stake in Motorola, which I suspect he wants to chop up into itty bitty pieces too.
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