Takeover chatter was looming Wall Street Monday morning with talks that Oracle Corporation may be looking to purchase Red Hat, Inc. The takeover chatter speculation sent shares of RHT rocketing higher more than 3.50% within the first few minutes of trading.
Red Hat, Inc. provides open source software to enterprises. They are most known for their enterprise operating system platform. Wall Street Analyst Andy Kibbens believes that Oracle could greatly benefit from such an acquisition. However, he wouldn't want Oracle to overpay. "A price of about US$9 Billion should be enough for the buyout" he said Monday morning.
A price of US$9 Billion would price the shares of Red Hat at 47.63$/share. This would represent a 23% premium over today's trading price.
