SAP will not extend or increase offer for SAP SI

SAP AG will not extend or increase its special offer to acquire the remaining shares in SAP Systems Integration AG (SAP SI) that it doesn't already own, company spokesman Marcus Berner said Tuesday.

The Euro 20.40 (US$24.70) offer, which expired Thursday, helped SAP acquire another 16 percent of the Dresden, Germany, systems integrator, bringing its total ownership to 90.01 percent, according to Berner.

In March, SAP announced its intention to take over SAP SI completely and merge the company with its own consulting unit, in a move to end consultancy duplication and save costs from running a separately quoted subsidiary.

SAP's next move is unclear.

The company isn't dropping any hints about its plans for the remaining 10 percent of SAP SI shares -- obviously to avoid driving up their market value.

"We said in March that we want to acquire up to 100 percent," Berner said. "(We) could, of course, buy additional shares via the stock market but we won't comment on this."

From a legal perspective, if SAP acquired 95 percent of SAP SI shares, it could do a "squeeze out" to gain control of the remaining 5 percent, Berner said.

But the Walldorf, Germany, business software vendor doesn't need to own SAP SI fully to proceed with its integration plans, according to the spokesman. "The 90 percent stake makes it easier for us to integrate the two teams," he said.

"It's a wait-and-see game," said SAP investor relations spokesman Umer Mir.

Last month, Software AG agreed to sell its 3.6 percent stake in SAP SI, bringing SAP's total ownership of the IT service provider to 74 percent.

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