September 9, 2016. In a regulatory filing yesterday, T. Rowe Price notified NetSuite that it will oppose Oracle's $9.3B takeover offer. T. Rowe Price holds 18% of NetSuite's outstanding shares valued at $1.6B at the close of yesterday's trading day.
Larry Ellison - Oracle's Chairman - and family members own approximately 40% of NetSuite's issued share capital. T. Rowe Price believes that the deal undervalues NetSuite and that the Ellison family's perceived conflict of interest scared off potential competitive bidders. It stated that none of its shareholders would tender their holdings by a September 15th deadline.
"In our view, the inherent conflicts of interest between NetSuite, the Ellison entities and Oracle are daunting and may be impossible to manage"
In a letter to NetSuite's board, T. Rowe Price states "In our view, the inherent conflicts of interest between NetSuite, the Ellison entities and Oracle are daunting and may be impossible to manage".
The Oracle deal for NetSuite is contingent upon a majority of shares not owned by Ellison or related entities voting in favor of the acquisition. September 15th is the deadline for NetSuite investors to tender their shares.
We'll have to wait and see whether Oracle ups its offer price.