Headline Feeds
Oracle (Nasdaq: ORCL) Corp. (Nasdaq: ORCL) plunged 4 1/16 to 24 3/4 Monday after the e-business software giant announced executive vice president Gary Bloom was leaving to head Veritas Software.
Oracle chairman and chief executive officer Larry Ellison said Bloom's move to Veritas would foster relations between the two companies.
"Gary is joining a key Oracle partner," said Ellison. "With Gary at Veritas we expect an already close relationship to grow even closer."
The departure of Bloom -- who has been mentioned as a possible successor to Ellison -- sent shares of Oracle tumbling from the open.
Following the announcement late Friday, UBS Warburg chief global strategist Edward Kerschner dropped Oracle from the list of highlighted stocks at UBS and its PaineWebber, Inc. affiliate.
First Union Securities, meanwhile, lowered its price target for Oracle shares to 35 from 40, saying there could be some "interim risk" for the company as it shifts management, noting that Bloom was the second executive to leave in six months.
Bloom headed the company's database business "with particular strength in the services sector," and the transition could affect the division, said First Union.
"We believe that Oracle's management team is deep enough to handle the departure of another EVP from the ranks and does highlight the capabilities of Oracle managers as they leave to credible positions outside the company," the First Union report said.
Bloom will stay on at Oracle through December 15th to ensure a smooth
transition, Oracle said. The company did not name a single successor, saying
Bloom's job would be "split among several Oracle senior executives."
