PeopleSoft says 'Yes' to $10bn Oracle offer
Lawsuits put on hold
PeopleSoft has at last accepted Oracle's offer to buy the company in a deal that values it at about $10.3bn. At $26.50 per share, the offer was noticeably higher that the "best and final offer" of $24 per share that Peoplesoft rejected in November.
Oracle says the sale has been approved by both companies' boards of directors. Oracle boss Larry Ellison expects the deal to close in January.
Legal wranglings between the two firms have also been put on hold, PeopleSoft said, and will be dismissed once the deal is finalised.
When PeopleSoft rid itself of CEO Craig Conway, it was widely expected that the company would accept an offer from Oracle. In rejecting the $24 per share offer, new CEO David Duffield said the deal undervalued his company, but added that he was taking the bid seriously.
In a statement issued this morning, Peoplesoft's chairman George Battle described the battle for his company as "long and emotional". He said: "After careful consideration, we believe this revised offer provides good value for PeopleSoft stockholders and represents a substantial increase in value from October."
Ellison said the deal would add about one cent per share to its Q4 results, and around two cents per quarter in its 2006 financial year. ®
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