TechnologyAccounting SoftwareOracle ups stakes in takeover bid

Oracle ups stakes in takeover bid

Oracle has arranged a further $1.5bn (£825m) credit to finance its attempted takeover of rival software vendor PeopleSoft.

Credit Suisse First Boston (CSFB), ABN Amro and other lenders have also agreed to extend the 364-day, $5.1bn credit facility originally provided by CSFB to launch Oracle?s bid in June 2003.

According to Oracle?s filing with the US Securities and Exchange Commission, it will be able to call on another $1.5bn for 364 days to help meet extra fees and expenses needed for any bid.

The vendor is waiting for a decision from the US Department of Justice following its anti-trust investigations into the bid. A decision on whether Oracle’s intentions are anti-competitive is expected early this year.

But, PeopleSoft’s share price continues to exceed Oracle’s initial offer and the renewed bid, with shares trading at around $24 (£12.95) as Accountancy Age went to press.

Datamonitor customer relationship management analyst Peter Ryan said: ‘I’m not surprised this has taken place. This [credit extension] proves Oracle is looking to get its hands on PeopleSoft.

‘This has been a clash of egos between Larry Ellison and Craig Conway. Ellison and Oracle don’t want to lose face in the business community.’

Even if Oracle gets control of its rival, the deal also requires the approval of the justice department and the European Commission. The commission revealed that a probe into the potential acquisition is set to take place and could take as long as four months to carry out, now an initial inquiry has been completed. It pointed out that this situation ?does not pre-judge the final outcome.’ Oracle has also lined up its own candidates for the impending elections of candidates to PeopleSoft’s board.

Andy Kellett, senior research analyst at Butler Group, said: ‘The longer this goes on, the more uncertainty it can create around PeopleSoft. Any takeover raises issues. But this one doesn?t seem to be the perfect fit.’

Related Articles

Accountancy in the digital age: Flexibility, agility, efficiency

Accounting Software Accountancy in the digital age: Flexibility, agility, efficiency

2w Pegasus Software | Sponsored
Sage purchases Intacct in its largest ever acquisition

Accounting Software Sage purchases Intacct in its largest ever acquisition

5m Alia Shoaib, Reporter
5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
UK behind foreign markets in digital accounting, but gap is narrowing

Accounting Software UK behind foreign markets in digital accounting, but gap is narrowing

7m Alia Shoaib, Reporter
The rise of the progressive accountant

Accounting Software The rise of the progressive accountant

7m Emma Smith, Managing Editor
Making Tax Digital: Revolution or revolt?

Accounting Software Making Tax Digital: Revolution or revolt?

8m Emma Smith, Managing Editor
Making Tax Digital: Is HMRC’s recent system fault a cause for concern?

Accounting Software Making Tax Digital: Is HMRC’s recent system fault a cause for concern?

8m Emma Smith, Managing Editor
Four reasons why SME owners should switch to cloud accounting

Accounting Software Four reasons why SME owners should switch to cloud accounting

9m Emma Smith, Managing Editor