Oracle Boss May Bid For Control Of Apple Ellison Forms Investor Group To Explore A Takeover Attempt

Is Oracle Corp. Chairman Larry Ellison Apple Computer’s savior? Or is his latest expression of interest in buying the company - an admitted trial balloon - full of hot air?

Ellison said he’s forming a group of investors and will decide within a few weeks whether to seek control of the ailing personal computing pioneer.

“Apple is in desperate need of all new management and leadership,” he said in an interview published Thursday in the San Jose Mercury News. “I think Apple can be saved. I think Apple should be saved.”

Ellison, who has said before he’d like to buy Apple, acknowledged he was testing the waters. He said the reaction, particularly from Apple’s big shareholders, would help him decide whether to make a bid.

At least one major investor was unimpressed.

“He certainly hasn’t offered anything in the way of a financial incentive,” said David Pogran, head of research for Parnassus Fund in San Francisco.

Ellison said his proposal, if he makes it, would give current shareholders 60 percent in cash and 40 percent equity in Apple - so long as they agree to sell at the current price.

“I could do that now in the market,” said Pogran. “I could call up a broker to sell 60 percent of our shares and I’d duplicate his deal. I’m a little underwhelmed.”

Apple spokeswoman Katie Cotton said neither the company nor any of its executives would comment on Ellison’s remarks or the newspaper story. A call to Ellison was not immediately returned.

Apple’s stock rose $1.87-1/2 per share, or 11 percent, to close at $18.62-1/2 on the Nasdaq Stock Market. Oracle’s shares fell $1.12-1/2, or 3 percent, to $39.37-1/2.

Ellison said that if he did acquire Apple, its current directors and top managers - including chairman and chief executive officer Gil Amelio - would get the ax. But Ellison said he has no plans to run the company himself.