BEA Systems’ board of directors has told Oracle it will only enter into take-over negotiations with the company when it raises its current $17 a share offer to $21 per share.

The new price has been calculated by BEA’s financial adviser, Goldman Sachs. However, the investment bank doesn’t explain why BEA shares should be worth so much today, given that they had  traded at just above $14 prior to Oracle’s offer – the highest value rating of BEA shares in four years.

Commentators have noted that BEA’s management may be playing with fire by setting such a high price on their independence. Should Oracle now decide to walk away from tis its original offer, BEA’s share price is likely to quickly fall back to $14 and might even go lower, considering that part of BEA’s value has always been seen as its potential attraction to possible suitors. Shareholder procescutions have been launched on the back of far less provocative issues than the collpase of share value following the rejection of suitor primed to pay a premuim price.