Feeds

PeopleSoft defends poison pills

And Oracle wants to cut the price...

  • alert
  • submit to reddit

Boost IT visibility and business value

David Duffield, PeopleSoft founder and acting-CEO, said the firm might have considered the Oracle takeover bid more seriously if terms had been different. Testifying in a Delaware court, he said that the bid offer might have been accepted if some terms had been dropped - and if Oracle had been serious about selling and supporting PeopleSoft products. Duffield took the reins as CEO after the departure of Craig Conway, who was implacably opposed to the deal.

Oracle has applied to the Delaware Chancery Court to overturn PeopleSoft's poison pill anti-takeover arrangement.

PeopleSoft did not ask its advisers to consider the first two offers of $16 and $19.50 per share. It did look at the third offer of $26 a share but decided it undervalued the company. Oracle has since reduced its offer to $21 a share, valuing the firm at $7.7bn.

PeopleSoft yesterday extended the deadline for its customer rebate program until the end of the year. The "Customer Assurance Program" allows customers to claim between two and five times the amount they spent on software if the firm is taken over by Oracle. The court heard from Oracle that this had created a potential liability of $2bn.

PeopleSoft executives gave evidence that the measures were needed to reassure customers. They admitted that some prospective sales had been scared off by news of the takeover bid and fears that their software would not be supported and developed in the long-term.

Oracle co-president Safra Catz told the Delaware Chancery Court that the "financial condition" of PeopleSoft has fallen by between 25 and 33 per cent. She did not say what impact this would have on a possible Oracle bid. A 25 per cent cut would value PeopleSoft at around $5bn.

More detail at CNET. ®


Related stories

Oracle vs Peoplesoft
OK, so Ellison is not a sociopath...
Peoplesoft sacks Craig Conway

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Intel's Raspberry Pi rival Galileo can now run Windows
Behold the Internet of Things. Wintel Things
Linux Foundation says many Linux admins and engineers are certifiable
Floats exam program to help IT employers lock up talent
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Linux kernel devs made to finger their dongles before contributing code
Two-factor auth enabled for Kernel.org repositories
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.