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Oracle's pursuit of PeopleSoft is over

Dawn Kawamoto CNET News

Published: 07 Jan 2005 15:35 GMT

Oracle is closing its PeopleSoft merger on Friday, after receiving more than 97 percent of PeopleSoft shares in its tender offer.

The announcement, made late Thursday, officially brings to close the controversial 18-month merger battle, which pitted two of the largest sellers of business software applications against each other in ways that extended far beyond the usual fight over customers.

Oracle, which had set a deadline of Thursday evening for PeopleSoft investors to tender their shares, was able to meet the 90 percent threshold to do a fast-track close on the deal and avoid a shareholder vote. A vote would have delayed closing the deal by four to six weeks.

PeopleSoft will operate as a wholly owned subsidiary of Oracle, which will notify employees of its former rival on 14 January whether they will remain or be let go.

During courtroom testimony in the parties' Delaware Chancery Court trial this past summer, Oracle indicated it may lay off as many as 6,000 PeopleSoft employees. Oracle's chief executive, Larry Ellison, noted in an announcement last month that the two companies had entered a friendly deal and that Oracle expected to retain some of PeopleSoft's sales staff, as well as senior engineers.

Oracle also plans a Webcast on 18 January to introduce the newly combined company and discuss its integration plans.