RealTime IT News

Oracle Gets Serious

Oracle got serious about acquiring rival PeopleSoft on Wednesday, but investors reacted to the new offer with skepticism.

Oracle sweetened its offer for PeopleSoft to $26 a share, the first increase since it raised its offer to $19.50 last June.

PeopleSoft gained 4% on the news, but at $23 a share, the stock remains well below Oracle's offer price. With staunch opposition to the takeover at PeopleSoft, investors are making clear they are skeptical that a deal will happen.

Tech stocks fell sharply Wednesday on results from Cisco that beat analysts' estimates, but weren't quite the blow-out quarter investors were hoping for. Cisco tumbled 9% on the day.

The Nasdaq plunged 52 to 2014, the S&P 500 lost 9 to 1126, and the Dow fell 34 to 10,470. Volume rose to 1.62 billion shares on the NYSE, and 2.27 billion on the Nasdaq. Decliners led 23-8 on the NYSE, and 24-7 on the Nasdaq. Downside volume was 73% on the NYSE, and 86% on the Nasdaq. New highs-new lows were 91-12 on the NYSE, and 111-10 on the Nasdaq.

After the close, Akamai and Roxio beat estimates.

During the day, Ciena plunged 18% on a warning.

WebEx soared 18% after beating estimates and raised guidance, while Sina and United Online fell despite better than expected results.

HP lost 3% on news of two acquisitions.

McData lost 5% on worries about storage switch competition from Cisco.

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