THE head of the Oracle software firm, tycoon Mr Larry Ellison, is weighing an estimated $1 billion (£635.5 million) bid to take control of troubled Apple Computer, according to US reports.

Mr Ellison told the San Jose Mercury News that he and an investment group he is forming would take a decision based on reaction from Apple's major investors in the next few days.

He said that if the group succeeded in the venture, Apple chairman Mr Gilbert Amelio - along with its current directors and top managers - would be sacked and that he and Apple founder Mr Steven Jobs would likely be members of the board, though not in top management roles.

"Apple is in desperate need of all-new management and leadership," Mr Ellison said, faulting Mr Amelio for "extravagant corporate spending for his personal pets projects".

"I think Apple can be saved," Mr Ellison said. "I think Apple should be saved."

Apple earlier this month said it would slash 2,700 full-time jobs, shed certain product lines and take a quarterly charge of $155 million in a bid to revitalise its market performance. Management at its plant in Cork have said this will not effect the 1,500 jobs there.

Apple company officials warned that in its second quarter, which ends today, revenue would come to between $1.6 billion and $1.7 billion, down from $2.1 billion in first-quarter sales.

In the quarter ending December 31st, Apple sustained a net loss of $120 million.

If an offer were made, according to Mr Ellison, current shareholders would be given 60 per cent in cash and 40 per cent in equity in the newly-run company.

In the last three months, Apple stock has declined from a high of $23.13 and is now" averaging around $ 17. Apple now has 124.7 million shares outstanding, making it worth about $2.1 billion. To buy 60 per cent, Mr Ellison and his group would need to put up some $1.25 billion.