ZDNet UK


Skip to Main Content

ZDNet.co.uk - Winner of Best Business Website 2007
  1. Home
  2. News
  3. Blogs
  4. Reviews
  5. Jobs
  6. Resources
  7. Community
  8. My ZDNet

 

ZDNet UK RSS Feeds


Industry watch Toolkit

PeopleSoft: Oracle's bid is not enough

Margaret Kane CNET News.com

Published: 12 Jun 2003 14:38 BST

  • Email
  • Trackback
  • Clip Link
  • Print friendly
  • Post Comment

PeopleSoft has formally rejected Oracle's $5.1bn (about £3.1bn) hostile takeover bid, saying the deal not only raises antitrust issues, but "dramatically undervalues" the company.

Oracle made a hostile takeover bid for PeopleSoft just days after PeopleSoft itself had announced plans to acquire J.D. Edwards for $1.7bn. The deal surprised many, since it offered only a scant premium on PeopleSoft's existing stock price and there was no evidence that Oracle chief executive Larry Ellison had attempted to contact PeopleSoft's board beforehand to discuss the matter privately.

Both PeopleSoft and Oracle make software used by corporations to handle back-office tasks in areas such as human resources, and both compete with German software maker SAP, which holds the No. 1 position in that marketplace. Oracle has said it will not continue marketing PeopleSoft's products if the deal succeeds, leading analysts and others to describe the bid as an attempt to drive a rival out of business, even if the sale doesn't go through.

"Oracle's offer seeks to enrich Oracle at the expense of PeopleSoft's stockholders, customers, and employees," PeopleSoft chief executive Craig Conway said in a release. "We believe that Oracle's proposed acquisition of PeopleSoft would stifle competition and limit customer choice. PeopleSoft remains steadfastly focused on providing customers with superior products and services, and we will not let Oracle's tactics interfere with our business."

PeopleSoft's board of directors voted unanimously to recommend that stockholders reject the offer and reaffirmed its commitment to the J.D. Edwards deal. On Wednesday, PeopleSoft filed notice with the Federal Trade Commission and the Justice Department of its plans to acquire J.D. Edwards.


See the Software News Section for the latest headlines on everything from peer to peer clients to Office software and beyond.

Let the editors know what you think in the Mailroom.

  • Email
  • Trackback
  • Clip Link
  • Print friendlyPrint with Konica

Did you find this article useful?
73 out of 139 people found this useful


Full Talkback thread

0 comments


Company/Topic Alerts

Create a new alert from the list below:












Discussions

erijustice erijustice

Beware

Tuesday 7 October 2008, 6:10 AM

2 comments
sunsj sunsj

xG update - money, mystery and more

Tuesday 7 October 2008, 4:44 AM

3 comments

Featured Talkback

In association with Intel
When all is said, if Microsoft produce the best product people will buy it and thats a good thing. If people have to buy their product because no one else can produce an alternative, only because interoperability protocols are kept secret, then thats a bad thing.

By: pround

Read full story:
EU court crushes Microsoft's antitrust appeal