BusinessCompany NewsOracle gets cash boost for PeopleSoft bid

Oracle gets cash boost for PeopleSoft bid

Oracle has arranged another $1.5bn (£830m) credit line in order to finance its attempt to takeover rival accountancy software vendor Peoplesoft.

Link: EC stalls Oracle’s bid for PeopleSoft

Credit Suisse First Boston, ABN Amro Bank 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 of a 364-day, $1.5bn revolving line of credit provision, the extra cash will finance the supply of working capital for extra fees and expenses in the PeopleSoft bid.

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

Peoplesoft’s share price continues to exceed both Oracle’s initial and later enlarged offers, with its shares currently trading at $23.

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

Ryan added: ‘This has been a clash of egos between [Oracle chairman and chief executive] Larry Ellison and [PeopleSoft president and chief executive] Craig Conway. I guess it’s the case that Ellison and Oracle don’t want to lose face in the business community.’

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