Page Two

By Dennis Callaghan  |  Posted 2003-06-24 Print this article Print

Today, Oracle waived its initial amendment condition and will file its own amendment with the SEC this afternoon. The move is designed to bring PeopleSofts board of directors to the negotiating table, Oracle officials. Oracle spokesman Jim Finn said in a statement that Oracle still consider the amended agreement an "unlawful device" since it deprives PeopleSoft shareholders of their voting rights with regard to the J.D. Edwards merger.
"The condition we have now waived was identified by the PeopleSoft board of directors as an important reason in declining to pursue discussions with us," said Finn. "We hope that with this waiver, PeopleSoft will finally agree to meet with us, as their shareholders are demanding."
However, PeopleSoft spokesman Steve Swasey said Oracle is "just blowing smoke again." "Removing the waiver means nothing when Oracle still has litigation pending against the PeopleSoft-J.D. Edwards merger in Delaware," Swasey said. Oracle filed suit against PeopleSoft, its board and J.D. Edwards in the Delaware Court of Chancery last Wednesday, alleging that their amended merger agreement was a breach of their fiduciary duties to shareholders since it could derail Oracles bid for PeopleSoft. Swasey declined to comment on if or when PeopleSofts board would meet with Oracle. He compared Oracles latest maneuver to the "backpedaling" he said Oracle has done on whether or not it would continue to support and develop PeopleSoft applications post-acquisition. "Theres been a pattern of this," said Swasey. "Its just another example of Oracle blowing smoke." Finn could not immediately be reached for comment on whether Oracle would drop its lawsuit against PeopleSoft and J.D. Edwards.


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