PeopleSoft reveals final J.D. Edwards terms
Published: 16 Jul 2003 15:18 BST
PeopleSoft on Wednesday detailed the exchange ratio it will use to complete its proposed acquisition of J.D. Edwards.
The business-software maker said that the exchange ratio for the acquisition would give J.D. Edwards stockholders around $14.74 (£9.20) per share of their outstanding common stock.
That represents a slight increase from the original ratio of about $14.10, attributed to a rise in PeopleSoft shares after the acquisition was announced in early June.
J.D. Edwards stockholders have the option of exchanging their shares for cash, PeopleSoft stock or a combination of stock and cash. Based on the outcome of the shareholder vote, J.D. Edwards stockholders will receive about $14.74 in cash or .8243 of a PeopleSoft common share or a combination of the two.
Any fractional shares will be paid in cash, the company said. The exchange offer expires at midnight EDT, on 17 July.
The California-based company said it calculated the revised $14.7384 offer by adding $7.05 in cash and $7.6884, which it said represents the value of 0.43 of a PeopleSoft common share. That figure is based on the average closing price -- $17.88 -- of PeopleSoft common stock over the five consecutive trading days that ended July 15.
Rival business software maker Oracle launched a hostile bid for PeopleSoft a few days after PeopleSoft announced plans to acquire J.D. Edwards last month.
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