Zacks senior European technology market analyst Robert Perri, CFA has downgraded shares of Hyperion Solutions (HYSL) on the news of Oracle’s offer to buy out the company. From the latest report come the following excerpts:

“After Hyperion reported a very solid fiscal second quarter, Oracle (ORCL) swooped in and offered $3.3 billion, or $52.00 per share to purchase the company. At the time, this was over a 20% premium to the share price, and Hyperion’s board of directors accepted the offer. We expect shareholders of HYSL to do the same, and the deal should be closed around April of 2007.

“Based on the acquisition and the purchase price, we have downgraded shares of HYSL to a Hold from our previous Buy rating, and have instituted a new price target of $52.00 per share, or the pending acquisition price.

“While Hyperion’s largest customers are also SAP (SAP) customers, Oracle is betting it can get a foothold in even more of SAP’s customer base and push out SAP with this move. Hyperion’s shareholders should be happy with the acquisition, as Oracle paid a 21.4% premium to the closing price the day before the acquisition.”

Read the analyst report on HYSL

Read the analyst report on SAP