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.’
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements