PeopleSoft has restructured its bid to acquire JD Edwards in an effort speed-up the deal and block Oracle’s hostile takeover bid.
The latest bid, announced yesterday (16 June) aims to speed-up integration of the two enterprise resource planning (ERP) companies and boost annual savings from the deal by between $150m (£89m) and $220m (£131m).
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Under the amended deal, PeopleSoft will pay half the $1.7bn (£1bn) purchase price for JD Edwards in cash and issue 52.6 million share of its stock. The revised bid also removes the need for PeopleSoft shareholders to vote on the transaction since less shares will be issued.
Oracle declined to comment on PeopleSoft’s revised bid.
PeopleSoft’s revised offer for JD Edwards is the latest twist in a volatile three-sided takeover battle.
Last week PeopleSoft said it would seek a temporary restraining order against Oracle’s bid. PeopleSoft’s board of directors also voted unanimously to recommend that shareholders reject the Oracle bid.
Oracle’s $5.1bn (£3bn) hostile bid for PeopleSoft on 6 June came only days after PeopleSoft announced its proposed £1bn acquisition of JD Edwards.
Meanwhile, SAP has attempted to capitalise on the market consolidation by poaching customers from JD Edwards and PeopleSoft.
The German software giant has invited key PeopleSoft and JD Edwards customers to its annual user conference in Orlando this week on the back of a global advertising campaing playing on the fears of customers of the two suppliers.