Oracle gets $1.5bn credit for PeopleSoft takeover


Oracle gets $1.5bn credit for PeopleSoft takeover

Oracle has arranged a $1.5bn credit line for potential use in its bid to acquire rival PeopleSoft.

Credit Suisse First Boston (CSFB), ABN Amro Bank and other lenders have agreed to provide Oracle with a 364-day $1.5bn revolving line of credit, Oracle said in a filing with the US Securities and Exchange Commission (SEC).

The money can be used to finance the acquisition of PeopleSoft and related fees and expenses and for working capital purposes, according to the filing. Oracle had already arranged for a 364-day $5bn credit facility with CSFB.

Oracle launched its offer for PeopleSoft in June, when it submitted a $5.1bn hostile bid for the company. Oracle later raised its offer to $6.2bn. The offer was pushed up to about $7.5bn when PeopleSoft issued additional shares in connection with its acquisition of JD Edwards.

Oracle earlier this month said it provided the US Department of Justice with all of the documents requested to complete the review and that it expected the department to make its decision on whether the acquisition is anticompetitive early this year.

Joris Evers writes for IDG News Service

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