PeopleSoft Board Rejects Oracle Takeover

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

Enterprise software company urges shareholders to reject a $16 per share takeover offer.

PeopleSoft Inc.s board of directors Thursday announced that it is recommending that stockholders reject Oracle Corp.s hostile takeover bid. At the same time, financial analysts are frowning on Oracles attempt to gobble up PeopleSoft, with Moodys Investors Services changing its ratings outlook for the database giant to negative. Oracle, of Redwood Shores, Calif., late last week offered PeopleSoft stockholders $16 per share, or about $5 billion, to buy its enterprise software rival. The move came days after PeopleSoft itself had announced a $1.7 billion deal to acquire a third enterprise software vendor, J.D. Edwards & Co.
PeopleSoft officials, in Pleasanton, Calif., said the board believes that Oracles offer would be tied up for a long time by U.S. and European government antitrust investigations, and that regulators were likely to block the deal on grounds that it would unfairly limit competition.
"The unsolicited and hostile nature of the offer, combined with Oracles statements, is designed to disrupt [PeopleSofts] strong momentum at significant cost to PeopleSofts customers. As a result, after careful consideration the Board, including a committee of independent directors, unanimously recommends that PeopleSoft stockholders reject the offer and not tender their shares to Oracle," a statement from PeopleSoft said. The board also said the $16 per share offer undervalued the company. "Oracles offer seeks to enrich Oracle at the expense of PeopleSofts stockholders, customers and employees," said PeopleSoft President and CEO Craig Conway, in a statement.

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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