PeopleSoft Takes Oracle to Court
Company also amends its own deal to buy software competitor J.D. Edwards.PeopleSoft Inc. on Monday amended its deal to buy enterprise software confederate J.D. Edwards and Co. This came after PeopleSoft on Friday filed charges against Oracle Corp., announcing that it wants to put an end to Oracles "sham tender offer" that company officials claim is aimed at "destroying PeopleSofts business." The complaint was filed in Alameda County [Calif.] Superior Court and alleges that Oracles hostile takeover bid, which was launched June 6, represents unfair business practices, trade libel and tortuous interference with PeopleSofts customer relations. The aim of the suit is to secure an injunction barring Oracle from proceeding with its tender offer. The suit alleges that Oracles true intent in making the tender offer was to "undercut PeopleSofts business operations by disparaging PeopleSofts products, services and future prospects; undermine PeopleSofts viability by creating uncertainty and doubt in the minds of PeopleSofts customers and prospective customers; and interfere with PeopleSofts plan to merge with J.D. Edwards & Co."
"By making an offer with the acknowledged intent of eliminating PeopleSofts business, Oracle seeks to disrupt PeopleSofts efforts to complete new sales, thus effectively damaging PeopleSofts business even if Oracle never buys a single share of PeopleSoft stock," said PeopleSoft President and CEO Craig Conway, in a release.