Oracle raises ante for PeopleSoft

Larry Ellison is trying more honey ? about $1.2 billion worth ? in his bitter fight to buy PeopleSoft, the human resources software company.

Oracle Corp. this morning upped its all-cash offer for PeopleSoft Inc. by $3.50 a share, to $19.50, the latest twist in a hostile takeover bid by the database software giant from Redwood Shores, Calif.

PeopleSoft rejected Oracle's $16-a-share offer, made nearly two weeks ago, and is pressing on with its plans to buy J.D. Edwards & Co., a Colorado software and services company.

Based on Tuesday's $17.15 closing price for a share of PeopleSoft stock, today's Oracle offer is about a 14 percent premium.

"In the last few days, Oracle executives have had the opportunity to speak with holders of a majority of PeopleSoft shares," Ellison, Oracle's founder and chief executive officer, said in a statement. "Many of those shareholders indicated the prices at which they would tender their shares."

Oracle's latest bid raises the value to about $6.3 billion, an amount some analysts believe is too great.

In the increasingly hostile back-and-forth, Oracle also said today it will sue PeopleSoft and J.D. Edwards in a Delaware court, hoping to block PeopleSoft's acquisition of Edwards.

On June 13, PeopleSoft, of Pleasanton, Calif., sued Oracle in a California state court, labeling Oracle's June 6 tender offer a sham that is designed to destroy its business and scuttle the Edwards merger.

When the markets opened this morning, PeopleSoft's shares were up, at $18.37.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.