SAP, the German software group, has ruled out making a challenge to rival Oracle’s $6.7 billion (£3.28 billion) hostile bid for BEA Systems.

SAP has traditionally concentrated on organic growth but made a sharp U-turn in that strategy last week when it snapped up Business Objects for €4.8 billion (£3.34 billion).

Henning Kagermann, the German group's chief executive, told the Financial Times that SAP was “categorically not excluding further big acquisitions”, but added that he was not considering a counterbid for BEA Systems because the group’s operation overlaps too much with SAP’s own.

BEA specialises in middleware, the software used to link up different business applications. An acquisition would push Oracle into second place in the middleware market, with about 20 per cent, behind IBM’s market-leading 30 per cent.

Oracle and BEA are currently tied for the second place spot with between 10 per cent and 12 per cent of the market each.

On Friday, BEA rebuffed Oracle’s $17-a-share all-cash offer, claiming it undervalued the company.

The Oracle bid represents a 25 per cent premium on BEA’s closing share price on Thursday. On Friday, shares of BEA soared more than 37 per cent, to $18.72.

Pressure for a sale is thought likely to come from BEA shareholders.

Carl Icahn, the billionaire activist investor, owns about 13.2 per cent of BEA. He has indicated that he favours a sale but has said that BEA should command a higher price than Oracle’s offer.

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