"The bid of $16 a share isnt really that low," said Cheng Lim, a research analyst at Fulcrum Global Partners LLC, in New York. "The fact that Oracle has done this at all creates a vicious cycle where customers wont gravitate to PeopleSoft, knowing theres this hostile takeover hanging over it. They want to do business with financially more-stable companies." And Paul Hsi, an analyst at Moodys Investors Service, in New York (which recently downgraded Oracles rating), said that the $16 bid was more a strawman bid than anythinga pre-emptive strike against bids coming from other sources, such as Microsoft."People on Wall Street are trying to figure out what could Oracle pay, will they pay higher than $16 a share. The question is what would they pay. I dont think any of us market analysts can really get inside Larry Ellisons mind." Skiba said he didnt take PeopleSofts antitrust claims seriously and that the Board may consider a better offer. "The next moves on Ellison," he said. "He can revise his bid upward or place his cards down, and say good luck, youre dead anyway. Hes already killed PeopleSofts business for June." Senior Writer Dennis Callaghan contributed to this story.
Brian Skiba, global technology analyst at Deutsche Bank in New York, said he expects Ellison to take the deal directly to PeopleSofts shareholders, perhaps as soon as tomorrow.