Feeds

Oracle must wait for poison pill decision

Judge wants to hear more evidence

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Oracle's proposed takeover of Peoplesoft has hit another barrier. A Delaware judge has delayed his final ruling over Peoplesoft's poison pill defence, saying that he needs to hear more evidence.

Judge Leo Strine said he wanted to hear why the Peoplesoft board had rejected Oracle's most recent bid of $24 per share. Peoplesoft's shareholders have voted to accept the bid, but the board rejected it. It says it will not sell the company for less than it is worth, and that the current bid undervalues the company.

In its defence against Oracle's hostile takeover bid, Peoplesoft promised to give its customers rebates worth between two and five times their licensing fees, in the event of a takeover. The deal, which represents a liability of at least $800m, would begin if the company is bought in the next two years, and if support for product lines is reduced within four years.

Oracle wants the court to overturn the measures. In its suit, it claims that the measures are unlawful because then-CEO Craig Conway misled investors.

The Delaware court is thought unlikely to overturn the Peoplesoft board. Which leaves Oracle with the much more time-consuming and expensive option of a proxy battle to gain seats on the board. Yesterday, Oracle announced that will nominate four candidates for election to Peoplesoft's Board of Directors. That vote will take place at PeopleSoft's 2005 annual stockholders meeting.

Jeff Henley, Oracle's Chairman of the Board said: "We believe that the current board of PeopleSoft is not acting in the best interests of stockholders and that a large majority of those stockholders are in favor of a change."

Judge Strine has pencilled the hearing in for 13 or 14 December, but declined to say when he would make his final ruling. ®

Related stories

Oracle v. Peoplesoft round-up PeopleSoft holds firm
It's War! - PeopleSoft investors side with Oracle
PeopleSoft threatens to sue Oracle

Security for virtualized datacentres

More from The Register

next story
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
Torvalds CONFESSES: 'I'm pretty good at alienating devs'
Admits to 'a metric ****load' of mistakes during work with Linux collaborators
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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.