At the end of October, the rumour mill was working overtime on gossip that Oracle Corp had very seriously considered making a bid for Apple Computer Inc, and this week, InformationWeek revives the story with a vengeance, suggesting that Larry Ellison’s interest in Apple is far from quelled and that takeover strategies are back on the agenda, this time taking the form of a break-up bid in which Oracle would take the software, and long-time bes’ friends Philips Electronics NV and Matsushita Electric Industrial Co would take the hardware. The highly speculative story was firmly denied by Philips, where a spokesman told Reuters How can I put it? It’s nonsense, as far as Philips is concerned, but the market liked the story and Apple shares rose shar ply in heavy early trading on Friday, rising $3.125 to $42.00. The paper claims that Oracle chief executive Ellison met Philips officials in October and with Matsushita executives a month later to discuss a plan under which Oracle would acquire all the software including Mac OS and its stake in Taligent Corp, Philips would take the desktop hardware, plunging the company back into the computer business it finally exited with sale of its remaining interests to Digital Equipment Corp some three years ago, and Matsushita would take the portable products. Oracle’s aim would be to use the Apple software to strengthen its hand in the battle with Microsoft Corp at the low end and with IBM Corp at the high end. Oracle has of course also shown keen interest in Mac OS as a standard for television set-top boxes. Oracle does not comment on such issues, and Apple would say only that it has discussed alliances related to set-top box technology with Apple. Matsushita is one of the widely-canvassed names on the lists of potential Mac OS licensees. According to InformationWeek, the idea of break-up bid for Apple has not yet been approved by Oracle’s board but that the strategy is still being actively considered.
