Oracle Corp. CEO Larry Ellison shocked the technology world today with news that he plans to make a $5.1 billion offer to buy ERP rival Peoplesoft Inc., according to the company.
The Redwood Shores, Calif., database giant wants to offer Peoplesoft shareholders $16 a share for the company. Peoplesofts stock was up more than 22 percent at midday, to $18.53. If the acquisition is approved by shareholders and regulators, Oracle would significantly increase its share of the enterprise resource planning market, and no doubt surpass leader SAP AG.
Peoplesoft, of Pleasanton, Calif., itself moved to acquire another rival, JD Edwards Inc., earlier this week for about $1.7 billion.
In a statement issued Friday afternoon, PeopleSoft President and CEO Craig Conway described Oracles offer as "atrociously bad behavior from a company with a history of atrociously bad behavior. Obviously it is a transparent attempt to disrupt the acquisition of J.D. Edwards by PeopleSoft announced earlier this week. If anyone needed any further validation of the strength of the J.D. Edwards acquisition, we heard it today from Oracle."
PeopleSoft and its Board of Directors will review the offer as required by law and will provide a definitive recommendation to shareholders shortly thereafter, the statement said.