Feeds

Oracle hikes Peoplesoft bid to $9.4bn

Upping the ante

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Oracle has raised its bid for Peoplesoft, again. The offer price now stands at $26 per share,a premium of more than $4 on the closing price on Nasdaq on Tuesday, and valuing its target at $9.4bn. This latest offer, which Oracle claims will be its last, is also above the highest value seen in the company in the last year.

The previous offer of $19.50 was well below the trading price of the shares, which hit a 52 week high of $24.04 last month. This price hike may make the bid more difficult for voting shareholders at Peoplesoft to turn down, but is likely to be seen as a heavy burden to carry by the Oracle investors.

Last week, Craig Conway, Peoplesoft’s CEO, said he still believed the bid would be blocked by the antitrust authorities. He also brought forward the company's annual shareholder meeting to late March in what is seen as an effort to disrupt the hostile takeover bid.

Clive Longbottom, head of research at UK analyst house QuoCirca, said that Oracle is not doing itself any favours. “Doing things like trying to get rid of Craig Conway and trying to install its own directors on the board is silly,” he argues. "That kind of behaviour gets noticed by everyone, including the regulators."

“There are plenty of people in the market who like the way Peoplesoft does business and would rather see it remain a separate entity. I think that many of the Peoplesoft shareholders consider that the company has a future in its own right. Then consider the Oracle shareholders. Even if the bid does get regulatory approval, I think they will see it as too high a price to pay to get rid of the competition.”

The US Department of Justice' Antitrust Division and the European Commission are investigating the bid on competition. A decision from the US is expected in March but the EU commission, traditionally a tougher nut to crack, could take much longer.

Oracle says it expects a decision regarding antitrust approval from the Department of Justice before March 12, and has extended the tender offer for all of the common stock of PeopleSoft to midnight EST of that day. The previous offer was set to expire at midnight EST on Friday, February 13, 2004.®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
Intel, Cisco and co reveal PLANS to keep tabs on WORLD'S MACHINES
Connecting everything to everything... Er, good idea?
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.