Microsoft bond issue causes rumors of SAP deal

Microsoft (MSFT) would almost certainly like to buy SAP (SAP), the second largest enterprise software company in the world, after Oracle (ORCL). It would give Microsoft a much bigger footprint in the software sector that caters to large businesses and governments. Cuts in overlapping costs could save hundreds of millions of dollars.

The speculation about an M&A deal between the two companies was rekindled when Microsoft announced its first bond offering, which it will make even though it has no existing debt and has over $25 billion in cash on its balance sheet.