BusinessCompany NewsOracle clears US hurdle for PeopleSoft

Oracle clears US hurdle for PeopleSoft

Oracle has made a huge step towards victory in its hostile takeover bid for rival business software company PeopleSoft, as the US federal courts rejected the Department of Justice's attempt to block the takeover bid.

Link: Anti-trust ‘elephant’ flattens PeopleSoft profits

‘This decision puts the onus squarely on the board of PeopleSoft to meet with us and to redeem their poison pill so that the shareholders can accept our offer,’ said Oracle chairman Jeff Henley.

PeopleSoft has said it will ‘review the implications’ of the ruling.

Oracle’s current offer for PeopleSoft stands at $21.00 per share in cash, representing a premium of 17% ($17.95) to close of market on 9 September 2004, and a premium of 39% ($15.11) to close of market on 5 June 2003, the day before Oracle originally announced its bid to acquire PeopleSoft.

It has also issued calls to the PeopleSoft board to accept its offer and for an urgent meeting to iron out a deal: ‘In light of recent trends and events, we urge the Board to reconsider its previous recommendation. We believe our offer provides full and fair value and that further delay is not in the best interests of PeopleSoft’s stockholders, customers, and employees.’

However a deal could still falter if the European Commission decides that a merger between the two is anti-competitive.

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