BEA rejects Oracle bid

BEA has rejected Oracle's $6.66 billion takeover bid.

BEA Systems has rejected

Oracle last week offered to buy BEA Systems Inc., a well-known San Jose, Calif.-based middleware provider, for about $6.66 billion.

BEA has rejected the initial offer, but has indicted a willingness to negotiate further. BEA has made it clear that it doesn't want a long, drawn out bidding process, however, because BEA and Oracle are direct competitors.

More on Oracle's offer for BEA:

Oracle bids for BEA Systems

"The board cannot consider any process which is long in duration, open-ended in nature, or would divulge competitively sensitive information which could materially harm our business and our shareholders' interests," Klein wrote.

For its part, Oracle is sticking with the $17 per share offer for now. In a response to BEA's rejection, Oracle's Phillips wrote that Oracle's "proposed price is a substantial premium to an already-inflated stock price."

Meanwhile, German enterprise resource planning vendor SAP AG, Oracle's chief rival, has ruled out making a counteroffer for BEA. SAP CEO Henning Kagermann told the Financial Times that SAP and BEA's operations are too similar for a counteroffer to make sense.

SAP made big acquisition news last week when it announced that it has deviated from its strategy of mostly organic growth and made a deal to

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