Ballmer squashes SAP takeover rumours

 

Gallery

By Reuters

Posted on 12 May 2009 at 17:30

Microsoft chief executive Steve Ballmer has labelled speculation the company may buy German software firm SAP as a "random rumour".

"I have nothing to say about rumors of acquisitions... positively or negatively," he told reporters in Mumbai, when asked about an acquisition of SAP. "It strikes me as a random rumour."

Microsoft sold a $3.75 billion debt issue earlier this week, sparking speculation that it could be readying a bid for the German firm.

SAP's co-chief executive Leo Apothekar said on Monday he believed the business software maker should stay independent, following the fresh speculation of a Microsoft bid. Rumours have periodically surfaced that either IBM or Microsoft might acquire the firm.

Job cuts nearly over

Ballmer also revealed Microsoft's plan to lay off 5,000 people globally over 18 months was mostly completed, as long as the economy didn't markedly deteriorate further.

"Assuming the economy only stays as bad as it is and doesn't get dramatically worse we will finish our plan, but if it gets dramatically worse again, which I guess is conceivable, we will debate again," Ballmer said.

Ballmer said Microsoft was hiring in some areas, although he would not be drawn on whether staff numbers in India would rise. "These are global additions and it is a little hard to separate our work globally from our work in India."

Microsoft has about 5,000 employees in India, the largest workforce outside the United States, a situation that was unlikely to change, he said.