Oracle bid 'undervalues' PeopleSoft
Peoplesoft has sent letters to its shareholders, claiming that Oracle's £9.3bn hostile bid for its software rival 'severely undervalues' the company.
Link: US government could block Oracle bid
The decision follows a similar move from Oracle last week, whose letter to Peoplesoft shareholders urged them to vote for its nominees to PeopleSoft’s board at its annual meeting on 25 March.
The new letter, signed by Peoplesoft chief executive Craig Conway and six fellow directors, said: ‘We believe that the offer Oracle made severely undervalues Peoplesoft based on its financial performance and future opportunities.
‘Furthermore, the massive downside risk is a critical consideration in evaluating any Oracle transaction.’
In contrast, it says its own merger with ERP rival JD Edwards is a strong and financially compelling business combination.
‘The complementary strengths of these two companies will enable PeopleSoft to address a broader segment of the enterprise software market and expand its product offering,’ the letter said.
Meanwhile, the parallel antitrust investigations conducted on opposite sides of the Atlantic into Oracle’s hostile bid for Peoplesoft are also beginning to draw to a close.
The US Department of Justice (DoJ) is due to rule on the deal no later than 2 March while the European Commission is due to rule by 11 May.