PeopleSoft has sued Oracle seeking an order barring
Oracle from proceeding with its hostile takeover bid for
PeopleSoft.
PeopleSoft has accused Oracle of unfair business practices,
trade libel, and tortious interference with PeopleSoft's customer
relationships.
Oracle launched its bid only to undercut PeopleSoft's business
operations, undermine its viability and interfere with the proposed
takeover of JD Edwards, PeopleSoft said.
The announcement of the lawsuit, comes after JD Edwards filed
two lawsuits against Oracle. JD Edwards is seeking damages and an
order that will block Oracle's bid for PeopleSoft.
On 2 June PeopleSoft announced it had agreed to buy JD Edwards.
Oracle launched a hostile $5.1bn (£3bn) takeover bid for PeopleSoft
on 6 June.
PeopleSoft and JD Edwards both compete with Oracle in the
enterprise applications market. Combining the two companies would
create a bigger competitor for Oracle, analysts have said.
PeopleSoft said its board of directors voted unanimously to
recommend shareholders reject Oracle's bid. JD Edwards have
strongly backed PeopleSoft's rejection of Oracle's bid.
The PeopleSoft lawsuit expands the high-stakes battle over
Oracle's attempted takeover of PeopleSoft. Oracle said PeopleSoft
had decided not to go to court.
"PeopleSoft seems to have revived its on-again, off-again
litigation strategy," Oracle said. "This matter must be decided by
PeopleSoft shareholders and not by frivolous litigation."
Joris Evers writes for IDG News Service