Oracle extends PeopleSoft offer

Oracle has again extended its $7.7bn (£4.3bn) cash offer for PeopleSoft. Shareholders now have until 8 October to tender their...

Oracle has again extended its $7.7bn (£4.3bn) cash offer for PeopleSoft. Shareholders now have until 8 October to tender their shares.

The extension comes two weeks after a federal judge in San Francisco sided with Oracle by ruling that an acquisition of PeopleSoft would not be anticompetitive. The US Department of Justice (DOJ) sought to block the hostile takeover on those grounds and battled Oracle during a four-week trial in June.

Oracle is offering $21 per share. The offer has been extended several times already and was set to expire on 24 September. The company's board of directors has unanimously rejected each of Oracle's offers as inadequate.

The number of shares tendered by PeopleSoft shareholders has dropped since Oracle won the court case.

About 23.8 million shares, or 6.5% of PeopleSoft's outstanding shares, had been tendered into Oracle's offer, down from 26.5 million, or 7.2% of outstanding shares, two weeks ago.

Although it has defeated the DOJ in court, Oracle still faces several hurdles before it can acquire PeopleSoft.

These include a possible appeal by the DOJ and an anti-takeover provision in PeopleSoft's bylaws that allows it to manipulate its shares to make a hostile acquisition prohibitively expensive. Also, the European Commission is still investigating the antitrust implications of the takeover bid.

Joris Evers writes for IDG News Service

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