Oracle, the world’s second biggest software company, made a $525 million bid for Retek, a Minneapolis firm that specializes in software for retail firms like Best Buy, just after the company’s board accepted a $496 million offer from Germany’s SAP AG that is now Oracle’s main rival.

While analysts speculate on the possibility of a bidding war, Oracle President Charlie Philips told BusinessWeek: “No one wants to get into a bidding war, so we don’t want to. But is it a possibility? Well, anything is possible. We’ll have to see how SAP responds.”

"Because there is no overlap between Oracle and Retek products, Retek customers will experience far more continuity with an Oracle combination," Philips wrote ina letter to Retek shareholders.

Oracle surprised the markets that had expected the software giant to take its time digesting its hard-won PeopleSoft acquisition.

Retek’s board has not commented on Oracle’s bid so far, and has not informed SAP.

Retek’s shares closed at $10.63 on Nasdaq with a 23% gain.