Ann: Becoming a substantial holder, page-26

MM are acting on their own behalf, they take an each way bet and buy shares in both companies as a Merger Arbitrage. They are hoping the TO fails so they can make some money. It wouldn't fail if Mr Ellison comes up with a better offer. The fact that MM are investing must be worrying both companies.
What is 'Merger Arbitrage'

Merger arbitrage involves simultaneously purchasing and selling the stocks of two merging companies to create "riskless" profits and is often considered a hedge fund strategy. A merger arbitrageur looks at the risk the merger deal will not close on time, or at all. Because of this slight uncertainty, the target company's stock typically sells at a discount to the price of the combined company when the merger is closed; this discrepancy is the arbitrageur's profit.