PeopleSoft builds up $2bn 'poison pill'
Published: 11 May 2004 09:15 BST
Software maker PeopleSoft reported on Monday that anyone that tries to buy the company could be on the hook for nearly $2bn (£1.13bn) in payouts to its customers.
That estimate was based on sales until 31 March, the company said.
PeopleSoft created the liability by including a money-back guarantee clause in many of its customer contracts over the past year. It began the so-called customer assurance programme as part of its defence against a $9.4bn hostile takeover bid launched by Oracle last June.
Although the US antitrust regulators are suing Oracle to block the merger, PeopleSoft has continued the guarantee programme, which is set to expire on 30 June.
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