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By Lisa Vaas  |  Posted 2003-06-12 Print this article Print

"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 anything—a pre-emptive strike against bids coming from other sources, such as Microsoft.
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.
"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.

Lisa Vaas is News Editor/Operations for and also serves as editor of the Database topic center. Since 1995, she has also been a Webcast news show anchorperson and a reporter covering the IT industry. She has focused on customer relationship management technology, IT salaries and careers, effects of the H1-B visa on the technology workforce, wireless technology, security, and, most recently, databases and the technologies that touch upon them. Her articles have appeared in eWEEK's print edition, on, and in the startup IT magazine PC Connection. Prior to becoming a journalist, Vaas experienced an array of eye-opening careers, including driving a cab in Boston, photographing cranky babies in shopping malls, selling cameras, typography and computer training. She stopped a hair short of finishing an M.A. in English at the University of Massachusetts in Boston. She earned a B.S. in Communications from Emerson College. She runs two open-mic reading series in Boston and currently keeps bees in her home in Mashpee, Mass.

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