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Friday June 29, 2:39 am Eastern Time

SAP deepens tie with U.S. partner Commerce One

WALLDORF, Germany, June 29 (Reuters) - German software group SAP AG underlined its commitment to U.S. partner Commerce One (NasdaqNM:CMRC - news) on Friday by announcing it would make an additional investment of up to $225 million in the firm.

SAP, Europe`s largest software group, said the move would raise its stake in Commerce One to about 20 percent of outstanding ordinary shares. The investment was likely to be completed in July or August, it said in a statement.

The announcement reaffirmed SAP`s links with Commerce One, whose shares had fallen sharply recently on market speculation that their cooperation might be faltering.

The two firms will hold a conference call at 1700 GMT to outline the decision.

Commerce One meanwhile said on Friday it expected second-quarter revenues to be lower than Wall Street expectations, dampened by poor economic conditions that have hit its customers.

The Pleasanton, Calif.-based company said it expects revenues for the quarter to June 30 to be about $100 million to $120 million. Wall Street analysts had on average expected revenues of $162 million.

SAP and Commerce One set up the partnership last June to develop software that allows companies to buy and sell goods over the Internet.

Commerce One Chief Executive Mark Hoffman said: ``SAP`s additional investment in Commerce One is further testament to both the strength of our alliance and the strength of Commerce One`s e-commerce capabilities.``

SAP said it had agreed with Commerce One that it would receive certain registration rights and pro-rata rights to purchase additional shares of Commerce One common stock in the future.

SAP has also gained the right to have a SAP representative appointed to Commerce One`s board of directors.

In addition, SAP agreed to limitations on its ability to transfer its shares of Commerce One ordinary stock and to acquire more than 23 percent of the stock, or to try to buy Commerce One stock without the approval of Commerce One`s board.

Commerce One last week halted a steep slide in its stock by seeking to reassure investors that its relationship with SAP was intact.
 
aus der Diskussion: Commerce One --> Countdown to extinction?
Autor (Datum des Eintrages): notdarkyet  (29.06.01 09:03:21)
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