Page Three

By John S. McCright  |  Posted 2003-06-20 Print this article Print

Rocha and Phillips both pointed out that Oracle would provide free E-Business Suite software to PeopleSoft users wanting to migrate, if the deal goes through. "The fact that Oracle would give you [free software], there is not a lot of value in that," Senn said. "The software cost is a fraction of the cost of a project like that."
He said the cost of training is substantial.
Phillips also said during the interview that Oracle arrived at its revised $19.50 per share offer price after consultations with PeopleSoft shareholders, most of whom told Oracle they would have to offer between $19 and $20 per share to win their approval. He saw no reason why Oracle should raise the bid any higher. "Theres no one to bid against, no white knight, so no reason to raise the price. This is the price the owners of the company told us wed have to pay," Phillips said. Phillips cautioned that PeopleSoft still has in place a "poison pill," a corporate bylaw that would make a hostile acquisition cost prohibitive. " With the poison pill still in place the deal will not happen," Phillips said. Phillips has emerged as Oracles point man on the acquisition after joining the company in mid-May, just weeks before Oracles bid for PeopleSoft was announced June 6. He had spent the previous nine years covering the enterprise software industry for Morgan Stanleys Institutional Securities Division. He deflected questions about his role, denying that he was hired specifically to help Oracle consolidate the enterprise software business. J.D. Edwards & Co. has named Phillips as a co-defendant in its lawsuit against Oracle. "I was just put on this when I got here," said Phillips. "I didnt even have a job description yet."


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