PeopleSoft board rejects Oracle offer
The board of business applications software giant PeopeSoft today voted unanimously to recommend stockholders reject Oracle's £5.1bn hostile bid for the company.
The board concluded that the offer would face lengthy antitrust scrutiny, and ultimately represent a ‘substantial threat’ to stockholder value after Oracle CEO Larry Ellison stated the PeopleSoft product would be discontinued.
The board also claims that the Oracle offer seriously undervalues the company based on its financial performance. ‘PeopleSoft remains steadfastly focused on providing our customers with superior products and services, and we will not let Oracle’s tactics interfere with our business,’ said president and CEO, Craig Conway.
Yesterday, PeopleSoft filed notification of its intention to acquire J.D. Edwards with the US Department of Justice and the Federal Trade Commission.