Deal was never to

By Lisa Vaas  |  Posted 2004-05-18 Print this article Print

analysts liking"> At any rate, many analysts have always hated the deal. Tom Burnett, president of Merger Insight, an affiliate of the New York research and brokerage firm Wall Street Access, told me his firm just never could understand why Oracle would "ruin its balance sheet" to take on all the liabilities tied up in PeopleSofts customer assurance plan, which has been pegged at carrying a potential price tag of between $1 billion to $2 billion if customers cash in on the rebate plan. "They have a nice balance sheet of cash," Burnett told me. "I dont know why they dont buy back their own stock instead of trying to go out and buy PeopleSoft." Thats a common refrain when it comes to the idea of Oracle assuming responsibility for PeopleSofts customer assurance plan. And at this point, with Oracle souring its offer price and publicly expressing gloom and doom over its chances of successfully acquiring PeopleSoft, we might well consider the possibility that the company never had serious intentions of getting into the guts of that customer assurance plan in the first place. In the meantime, PeopleSoft well-wishers can just cross their fingers and hope that potential customers can weather the storm that all this Oracle wind has wrought.
Please register for TalkBack below and tell me and other readers what you think, or write to me at Database Center Editor Lisa Vaas has written about enterprise applications since 1997. Check out eWEEK.coms Database Center at for the latest database news, reviews and analysis.

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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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