Oracle, Siebel Have Talked, 2 Analysts Say; But See No Deal In Near Term; Struggling Siebel might not be urgent prize as Oracle still integrating PeopleSoft.(INTERNET & TECHNOLOGY)

Byline: J. BONASIA

Two Wall Street analysts on Friday said Oracle recently held talks to buy struggling Siebel Systems, but they and others say such a deal is unlikely, at least in the near term.

People who work at both companies have told him the two software makers held "significant conversations" in recent weeks, says Bert Hochfeld of Hochfeld Independent Research Group.

Oracle and Siebel declined to comment.

Siebel's market cap is $4.63 billion. Oracle apparently offered a bit more than $5 billion, says Hochfeld. Siebel, he says, apparently rejected the amount as too low, and the matter is off the table for now.

"I don't think anything is currently going on," he said.

Another analyst, who spoke on condition of anonymity, says some Siebel board members would jump at a bid near $6 billion, or $12 per share. The analyst doubts Oracle would pay that much. But the talks "have definitely gone beyond the first kiss," said the analyst.