Oracle increases PeopleSoft bid

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Oracle increases PeopleSoft bid

Oracle has raised its bid for PeopleSoft to $9.4bn (£5.1bn) in a final offer for its rival.

 

Oracle began trying to acquire rival enterprise software maker PeopleSoft last June, initially offering $5.1bn (£2.8bn) for control of the company.

 

Analysts and shareholders said the company was offering too little for PeopleSoft, and Oracle raised its bid to $19.50 per share. After PeopleSoft closed its acquisition of JD Edwards in August, the price tag for the PeopleSoft acquisition climbed to $8.3bn.

 

Oracle also extended the deadline on its bid for the sixth time. Previously set to expire on 13 February, the offer to shareholders is now valid until 12 March.

 

This offer represents Oracle's final price, said Oracle chairman and chief financial officer Jeff Henley.

 

One obstacle to the attempted hostile takeover remains regulatory clearances from the US Department of Justice and the European Union.

 

The EU said it will complete its inquiry by 21 April. The DoJ has not announced a timeline, but Oracle said it expected a DoJ decision before 12 March.

 

The revised bid by Oracle is the latest twist in an increasingly bitter takeover battle.

 

Last year, PeopleSoft introduced “poison pill” anti-takeover measures. These included offering customers a refund of up to five times the cost of PeopleSoft's software licences should PeopleSoft be bought out in the next two years and the purchasing company drops support for the applications within four years.

 

Stacey Cowley writes for IDG News Service


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