Siebel may buy SCM specialist i2

Customer relationship management (CRM) software vendor Siebel is rumored to be interested in purchasing supply chain management (SCM) specialist i2 Technologies, according to reports from the US.

Analysts said a merger could benefit both firms and their customers. The supply chain expertise of i2 would help Siebel move away from being a CRM specialist and towards provision of total e-business solutions, analysts said.

"It would make sense for such a takeover to occur," said Guy Chaigneau of analyst firm Frost & Sullivan. "It would better position Siebel in the high-end against the likes of Peoplesoft and Oracle."

The shares of i2 Technologies have lost 93 percent of their value this year, making the firm ripe for takeover by a cash-rich company such as Siebel.

Siebel and i2 customers would also benefit from a buy-out, according to commentators, including Tom Harwick, director of research group Giga.