Middleware vendor would have too much overlap, SAP argues

SAP has no interest in acquiring BEA Systems by launching a bid rivalling Oracle's $6.7bn acquisition offer.

SAP chief executive Henning Kagermann told The Financial Times on Monday that the firm is only interested in "complementary deals" that allow it to expand into new markets. A combination of SAP and BEA would have too much overlap, he commented.

SAP earlier this month agreed to acquire Business Objects, a firm specializing in business intelligence. Investors have expressed fear that Oracle could attempt to derail the transaction by outbidding SAP.

Anne Thomas Manes, a research director with analyst firm Burton Group had argued that an SAP bidding war was unlikely.

"BEA doesn't really offer much to SAP," she wrote on a company blog. "BEA has a few nice bits that SAP could exploit: AquaLogic Data Services, AquaLogic Enterprise Security, the SIP server extension to WebLogic Server, and the Workshop tooling. But those bits certainly aren't worth [more than] $7bn to SAP."

BEA has turned down Oracle's offer, claiming that it is worth more than what Oracle is bidding. The two have exchange several letters, suggesting that Oracle might have to launch a hostile takeover bid.

BEA's valuation jumped to $7.2bn after Oracle launched its bid, indicating that investors expect Oracle to further raise its offer.