Printer Friendly

23 June--PeopleSoft rejects revised Oracle offer. (CRM News Review).

In a move that will come as a surprise to no one, PeopleSoft Inc has formally rejected the revised offer from Oracle Corp to purchase all of its shares and merge the PeopleSoft business in its entirety into Oracle.

PeopleSoft reported that following careful consideration and acting on the recommendation of a committee of independent directors, the board of directors had voted unanimously to recommend that PeopleSoft stockholders reject Oracle's $19.50 cash offer.

On June 6, Oracle offered PeopleSoft stockholders $16 per share, which PeopleSoft also recommended its stockholders to reject, but increased the bid to $19.50 per share last week.

The PeopleSoft board maintained its previous stance that the offer was not in the best interests of the company's stockholders and that the merger would face lengthy regulatory delays and would probably be prohibited.

It added to these previously stated objections and said that the board believes the $19.50 offer "undervalues the company based on its financial performance and significant future opportunities including the value created through the acquisition of JD Edwards."

In what may be wishful thinking, Craig Conway, PeopleSoft's President and CEO said that board had identified additional risk to stockholders from the offer "because it is highly conditional and Oracle could withdraw it at any time."

While it was thought that Oracle's initial bid might have been made primarily in order to disrupt PeopleSoft and JD Edwards' merger and their respective sales operations, the revised bid confirmed how serious it was.

The three parties are engaged in a race to see who can take their offer to completion first. PeopleSoft amended its all-share offer to acquire JD Edwards to a part cash/part stock offer, removed the requirement for a shareholder vote, and started the exchange offer for JD Edwards' share last Thursday. Meanwhile, Oracle launched a legal bid to prevent the JD Edwards acquisition proceeding.
COPYRIGHT 2003 Datamonitor
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:MarketWatch: CRM
Date:Jun 24, 2003
Previous Article:20 June--PeopleSoft goes ahead with JD Edwards exchange offer. (CRM News Review).
Next Article:24 June--Oracle moves to placate PeopleSoft customers. (CRM News Review).

Related Articles
PeopleSoft/JD Edwards/Oracle acquisition timeline. (CRM News Review).
13 June--war of words as PeopleSoft spurns Oracle bid. (CRM News Review).
16 June--Oracle vs PeopleSoft: what a difference a year makes. (CRM News Review).
24 June--PeopleSoft awaits 'white knight' bidder. (CRM News Review).
JD Edwards rolls through user conference. (In Other News...).
PeopleSoft Advises Owners to Reject Oracle Bid.
Oracle Ups PeopleSoft Bid, Sues, Gets Sued.
PeopleSoft Rejects Revised Oracle Offer.
More PeopleSoft Shareholders Reject Oracle Offer.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters