Connecticut Snubs Oracles Conciliatory Efforts

 
 
By Lisa Vaas  |  Posted 2003-06-19 Email Print this article Print
 
 
 
 
 
 
 

Connecticut Attorney General Richard Blumenthal vows to continue to seek relief and to consult with consumers and other states on its antitrust suit against Oracle.

Connecticut on Thursday shrugged off a conciliatory letter sent the day before by Oracle Corp. Chairman and CEO Larry Ellison, as Attorney General Richard Blumenthal vowed to continue to seek relief and to consult with consumers and other states on its antitrust suit against Oracle. "Nothing we have learned so far has diminished our determination to pursue this antitrust enforcement action filed yesterday in federal court seeking to protection competition and consumers from an unlawful takeover attempt," Blumenthal said in a statement. "Oracle has indicated that it will shut down and end innovation in PeopleSoft product lines, including recent statements attributed to Mr. Ellison himself, and a statement apparently in the past 24 hours by Oracle CFO Jeff Henley that Oracle would not offer PeopleSoft products to new clients and would work to naturally wind down existing clients reliance on PeopleSoft software." Blumenthals words are a flat-out rejection of Ellisons promises that Oracle would continue to support PeopleSofts products. Ellison on Wednesday sent a letter to Connecticut leaders in which he said that consumers will "be able to purchase additional PeopleSoft licenses," and that Oracle "will protect the significant technology investments that all customers have made," he wrote.
Meanwhile, PeopleSoft Inc. joined Connecticut in its commitment to spurning Oracle, announcing on Wednesday that it had commenced an exchange offer for all outstanding shares of common stock of J.D. Edwards & Co.
PeopleSoft is offering J.D. Edwards stockholders either cash or PeopleSoft common stock with a value equal to $7.05 in cash plus the value of 0.43 of a PeopleSoft common share for each share of J.D. Edwards common stock they own. Based on PeopleSofts closing per-share stock price of $16.92 on June 13, 2003—the trading day immediately prior to its announcement of the amended merger agreement—J.D. Edwards stockholders would receive $14.33 per share. That would make a total transaction value of about $1.75 billion (based on 122.4 million J.D. Edwards shares outstanding).
 
 
 
 
Lisa Vaas is News Editor/Operations for eWEEK.com 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 eWEEK.com, 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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