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By Renee Boucher Ferguson  |  Posted 2004-03-25 Print this article Print

Near the end of the meeting, several institutional shareholders raised questions in regard to Oracles tender offer. A representative of LA Shareholders wanted to know why PeopleSoft spends 38 percent of its revenue on company resources while Oracle spends only 25 percent of its revenues for the same purposes. "If you look at it, the two companies are not similar," said Kevin Parker, PeopleSofts chief financial officer. "Oracle is predominantly in the database business, and it is a source of revenue for them. Analysts say that Oracle is losing money in applications, while it is very dominant in database. If you compare the applications business, youll find we are substantially more [profitable]."
At the same time, a Chesapeake Partners representative wanted to know if regulatory approval were granted, would PeopleSofts board "do the right thing" and allow Oracle to purchase PeopleSoft, based on the fact that Oracles offer is about $8 per share higher than what PeopleSofts stock is currently trading at?
"The board of directors will do its very best to do the right thing," said Battle. "We sit here to maximize shareholder value over the long term. Thats what well do for you in the future." The Justice Departments case against Oracle is expected to go to trial June 7. "The final voting results will be reported on Form 10-Q in PeopleSofts upcoming first-quarter report," officials said. Check out eWEEK.coms Enterprise Applications Center at for the latest news, reviews, analysis and opinion about productivity and business solutions.
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