Shares in German computer software maker SAP fell more than 5% today on market scepticism about the merit of SAP's plans to buy Franco-American peer Business Objects, analysts said.
Dealers said a profit warning issued by Business Objects over the weekend also weighed on the share price.
SAP said it has agreed to buy its smaller French rival, Business Objects, for more than $6.8bn.
The two groups announced their tie-up late last night, before Business Objects revealed a downward revision to its expected third quarter results, foreseeing sales in a range of $366m - $370m rather than $382 - $387m.
The deal would give SAP a large client base dominated by small business clients, according to the CM-CIC brokerage.
'We are surprised that SAP always repeated its mantra of organic growth and finally decided to acquire Business Objects,' UniCredit said in a note to clients.
It added the price was a clear premium to the average in comparison with recent acquisitions in the software industry.
Analyst Theo Kitz at Merck Fink said: 'The move is contradictory to management's strategy to pursue organic growth with only small fill-in acquisitions and it will put a strain on financials next year.'
Analysts at brokerage Kepler said the move was viewed negatively due to the high price, and Oliver Finger, an analyst at DZ Bank, said the deal increased SAP's risk premium.
SAP produces a wide range of software for businesses, while Business Objects is a specialist in so-called business intelligence, products and services that track and manage information to help directors make business decisions.
