Ahead of BEA Systems Investor Presentation, Carl Icahn May Be Wasting His Time (BEAS)

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Carl Icahn is a powerful investor when he wants to be.  As far as BEA Systems (NASDAQ:BEAS) he increased his stake in a filing on Friday to more than 33 million shares to what amounts to an 8.5% stake in the company.  His take on BEA Systems is that consolidation has hurt growth and that the company would do better as a unit of a larger parent. 

BEA Systems used to be one of the perpetual takeover rumor stocks out there.  But the problem is that this company cannot be bossed around.  The company is still delinquent in some of the required filings, and it is deemed to be a company that Alfred Chuang (the Founder, Chairman, CEO, and President) can enact anti-takeover provisions.  That may have changed, but that is still the belief of many tech investors.

We previously asked if BEA Systems was any closer to a buyout offer.  BEA has been a perpetual stock where the company has said it wants to remain independent, and the belief is that this can ONLY be done on a friendly basis.

Shares closed up almost 4% at $13.25 on Friday and are up marginally at the end of today.  It seems that many others also that Carl Icahn may only be marginally successful in this particular instance.  BEA Systems’ head of investor relations is set to speak at a Bank of America conference Tuesday. September 18, at 4 PM Pacific Time, so this may be one to watch later today if this gets addressed.

Jon C. Ogg
September 17, 2007