Oracle Must Build a Future Without PeopleSoft
With the chances of Oracle winning its hostile takeover bid growing more and more unlikely, the company must look for other ways to grow its business.It appears increasingly unlikely that Oracle will succeed in its hostile takeover of PeopleSoft, even if it gets the green light from government regulators in the U.S. and Europe. Thats because it is now highly doubtful that Oracle will be able to persuade anywhere near a majority of stockholders to toss out the current PeopleSoft board of directors in favor of Oracles nominees. One sign that PeopleSoft senior managers are confident that the company will fend off the hostile takeover is that it has pushed up the annual meeting to March 25 from its usual date in May. This move makes sense if management believes shareholders will reject the Oracle bid because an early vote means the company can get the Oracle monkey off its back that much sooner.
The move also means PeopleSoft is not counting on the Justice Department to come to its rescue by blocking the buyout on the grounds that it would illegally curtail competition in the software industry. The Justice Department has indicated that it should be ready to report its decision sometime this or next month.