According to Oracle, PeopleSoft's board of directors
will reject its latest $24 a share "best and final offer" in its
ongoing takeover bid for the company, leaving the fate of its plans
in the hands of PeopleSoft's shareholders.
Oracle's offer, valued at $8.8bn (£4.8bn), expires on 19
November, meaning that unless shareholders tender their shares by
next week, the long-running fight could soon be over.
Oracle launched its takeover attempt in June 2003 and at one
point was offering as much as $26 a share, a price PeopleSoft's
board also rejected.
"After receiving an affirmative clearance decision from the
European Commission, we submitted our best and final offer to the
PeopleSoft board," said Oracle chief executive officer Larry
Ellison.
"Oracle's board deliberated and concluded that the absolute
maximum amount we were prepared to pay was $24 a share. Beyond
that, there are better uses of our capital, including other
acquisitions and repurchasing our own shares.
"Oracle has been at this for a year and a half, and it is now
time to bring this matter to a close. On 19 November, we will
respect the will of the shareholders," he concluded.
"PeopleSoft's shareholders now face a very simple decision,"
said Jeff Henley, Oracle's chairman of the board. "They can accept
our all-cash $24 a share offer... or it will be withdrawn. We
believe our offer represents a substantial premium over
PeopleSoft's standalone value now or in the foreseeable
future."
Ken Mingis writes for Computerworld
