Will Oracle Buy HP?

Word on the street is that Oracle has threatened to buy its sworn enemy HP. According to the Times of India, HP directors are terrified that their falling shares would make the company vulnerable to a bid from Oracle. Apparently this was the reason for the sudden sacking of Leo Apotheker.

Oracle has considered informally whether to approach Hewlett-Packard, but it’s unlikely to make a bid any time soon. But to make sure HP has hired Goldman Sachs to help it prepare for any possible moves by activist investors, one person said.

If Oracle were to make a hostile takeover it would be with the sole aim of getting rid of a lot of people who have hacked Larry Ellison off. It might even result in Mark Hurd returning to the company.

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Is HP Going To Court?

HP and its top executives have been accused of misleading investors before a slump in its stock price.

HP is facing a class action lawsuit filed by Robbins Geller Rudman and Down alleging that CEO Leo Apotheker and CFO Cathie Lesjak misled investors before making announcements that included the possible spin-off of its PC business, dumping WebOS devices and the purchase of British software outfit Autonomy.

Those announcements, all made in one afternoon, led to a 20 per cent drop in HP’s share price the following day. That, according to Reuters, was the largest one day decline in HP’s share price since 1987.

The lawsuit against HP does not specify damages but it serves to highlight the growing concern at the way Apotheker is leading HP. The firm’s announcement that it was considering leaving the PC business was a shock to many, but its decision to dump its WebOS devices was perhaps the biggest shock of the lot.

While HP’s PC business was always seen as a low margin operation, WebOS was viewed as a core part of HP’s future strategy. The firm kept banging on about slipping WebOS into as many devices as possible, however all that talk evaporated, just like HP’s Touchpads when it sold them off at fire sale prices for a massive loss.

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Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

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Shareholder Group Demands RIM Shake-up

An activist shareholder in Research In Motion said on Tuesday it wants the struggling BlackBerry maker to seriously ponder selling itself or spinning off its patent portfolio, sending RIM’s share price higher.

Jaguar Financial Corp said it wants the Canadian company’s board to take control from co-Chief Executives Mike Lazaridis and Jim Balsillie and for up to five of RIM’s independent board members to explore options to maximize shareholder value.

RIM shares were up 1.3 percent at midday Tuesday at $30.52 on the Nasdaq and gained 2.3 percent to C$30.26 on the Toronto Stock Exchange. Both markets were down sharply
overall. RIM shares have lost almost half their value since the start of the year.

“Our call is for (RIM’s board) to take action; no more study, take action. Take action now, before it’s too late,” Jaguar Chief Executive Vic Alboini said in an interview.

Alboini said Jaguar has talked to a select group of shareholders and received broadly positive feedback for its plan.

“We haven’t found one who wasn’t supportive,” he said. “We haven’t found any opposition.”

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HP Exec Claims Evidence Was Falsified

HP has been accused of producing “false and fabricated” evidence against a former sales executive who the firm claims stole confidential information.

Adrian Jones, who was a sales executive at HP, left the firm to join Oracle in February 2011. HP claims that Jones nabbed a load of confidential information between 10 and 11 February using a removable hard drive. Jones told the court that the hard drive was used by HP for backup and was never in his possession, saying that HP and its outside counsel have confirmed these facts.

Jones’ current employer Oracle said that the accusations leveled at its employee are simply not true, with Deborah Hellinger, a spokeswoman for Oracle telling Bloomberg, “The central allegation in HP’s employment lawsuit against Adrian Jones has turned out to be complete fiction…. If they did it knowingly then HP and their lawyers should be sanctioned. If they did it mistakenly then they simply owe Mr Jones an apology.”

HP is said to have probed Jones’ relationship with a female subordinate, for whom Jones allegedly arranged a 94 per cent pay rise and expensed travel that had no business purpose.

Jones’ case mirrors that of former HP CEO Mark Hurd who left the company after similar expense discrepances were brought to light. Hurd, a close friend of Oracle CEO Larry Ellison, then joined Oracle as co-president within weeks of leaving his post at HP.

HP and Oracle have been going at it hammer and tongs in a largely public row over Oracle’s decision to dump support for Intel’s Itanium architecture. The two companies are in various other legal battles as well, with HP claiming that Oracle had gone from being a partner to a “bitter antagonist”. We assume the next lawsuit will claim that Oracle stole HP’s lunch money and beat it up behind the bike shed, or perhaps the other way around.

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Nokia Expects Windows Phone Before EOY

Nokia has “increased confidence” that the first of its smartphone devices to run on the Windows Phone platform will ship by the fourth quarter, the company said on Tuesday.

Nokia’s CEO Stephen Elop is putting his full weight behind getting a Windows Phone-based product out for the important end-of-year holiday shopping season, in order to help turn around the company’s smartphone fortunes. The company’s teams are aligned around that goal, he said in a statement.

The company won’t reveal ship dates until closer to when the first phones arrive, but the pressure is on to deliver the devices this year, Elop said when the company announced its first quarter results.

Nokia will have several more opportunities to divulge more information shortly. On June 21, Elop will give a presentation at the Connection 2011 Conference, which is organized in conjunction with CommunicAsia 2011 in Singapore. He will give an update on the company’s partnership with Microsoft, and set the stage for a number of product and service launches, according to the program.

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Facebook Growth Very Good

Facebook Inc’s business is growing faster than forecast several months ago and the social media company is on track to surpass $2 billion in earnings before interest, taxes, depreciation and amortization in 2011, according to a story in The Wall Street Journal.

Facebook’s growth is above the growth projections that circulated when Goldman Sachs and Digital Sky Technologies invested in the closely held Internet company, the newspaper said in its online edition.

The newspaper did not indicate by how much Facebook may exceed those original expectations.

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