Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications

    Oracle Raises Bid for PeopleSoft

    By
    Renee Boucher Ferguson
    -
    February 4, 2004
    Share
    Facebook
    Twitter
    Linkedin

      The bitter battle between Oracle Corp. and PeopleSoft Inc. has taken on a new twist. Oracle this morning raised its bid for PeopleSoft by $6.50 a share, or about $9.4 billion.

      PeopleSoft, of Pleasanton, Calif., announced positive fourth-quarter earnings last week, to the tune of $685 million—a 34 percent increase over the same quarter last year. With positive earnings, those watching the deal closely felt it was only a matter of time before Oracle raised its bid to acquire its rival.

      The latest offer is about an 18 percent premium over PeopleSofts closing price of $21.89 at the close of market Tuesday, according to Oracle officials.

      The raised bid for PeopleSoft represents another twist in the deal. PeopleSofts board of directors have twice rejected Oracles bid on the grounds that it undervalues the company.

      Oracle, on the other hand, has continuously pointed to PeopleSofts declining earnings as eroding shareholder value.

      Todays increased bid points to a recapitulation of sorts—one downplayed by Oracle.

      Jeff Henley, Oracles chairman and interim chief financial officer—Oracle is searching for a new CFO as Henley has recently been appointed to the board—said in a statement, “Given PeopleSofts current prospects, including its recent downward revisions to earnings guidance for the first quarter, we believe our offer presents a compelling value to PeopleSofts stockholders.”

      Oracle officials said this is the companys final offer.

      “We urge PeopleSofts directors to seriously consider our offer,” said Henley.

      Oracle is also waging a proxy battle to win over PeopleSoft. Late last month the company announced a slate of nominees for PeopleSofts board of directors. Last Friday, PeopleSoft nominated four of its eight sitting board members for re-election, and set the date for the annual shareholders meeting for March 25. Shareholders can vote for new board members as early as Feb. 10.

      Oracle is also hoping to increase PeopleSofts board from eight members to nine.

      Both companies have suits pending against the other. PeopleSofts claim, filed in Alameda County, Calif., seeks injunctive relief from Oracles hostile takeover bid.

      Oracles suit, filed in Delaware, seeks injunctive relief from PeopleSofts poison pill anti-takeover measure, and to have PeopleSofts controversial Customer Assurance Program rescinded. That program looks to refund PeopleSoft customers between two and five times their license fees in the event of a takeover.

      Both cases are in the deposition phase.

      At the same time, the U.S. Department of Justice, the European Commission and more than half the states attorneys general are investigating the possible anti-competitive nature of the proposed deal.

      All three investigations are pending.

      Oracles tender offer, extended three times since the initial offer in June, expires March 12.

      Renee Boucher Ferguson

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×