PeopleSoft faces shareholder revolt

Link: PeopleSoft deal is body blow to Oracle

In filings to the US financial authority, the Securities and Exchange Commission, PeopleSoft revealed that some of its shareholders have filed complaints against the board.

All the complaints allege that PeopleSoft’s board breached its fiduciary duties, in relation to the offer from Oracle to buy the firm for $6.3bn.

Oracle has been courting PeopleSoft’s shareholders ever since the PeopleSoft-JD Edwards tie-up was first announced.

To date Oracle has persuaded only around 10 per cent of PeopleSoft’s shareholders to back its $19.50 per share offer. But Oracle continues to extend the deadline for its offer.

A group of eight shareholders have filed complaints in the Delaware Court of Chancery. A further four complaints were filed in the California Superior Court for the County of Alameda, although this action will not be heard until after the Delaware Court rules.

In its SEC filing, PeopleSoft said it believes the claims are ‘without merit, and intends to vigorously defend’ itself against them.

Related reading