Oracle completes regime change at PeopleSoft
Tries to woo stubborn shareholders
Oracle has boldly claimed that it now has full control of PeopleSoft, although its takeover is actually not quite done.
Oracle on Tuesday revealed that close to 75 per cent of PeopleSoft shares had been tendered by investors. Having obtained a controlling stake in PeopleSoft, Oracle appointed four people to serve on the company's board. The new board members replace PeopleSoft board members - including CEO David Duffield - who have resigned from their posts. Two PeopleSoft board members will stay on until Oracle completes its purchase of the software maker.
Oracle now holds 299m PeopleSoft shares but needs to acquire 90 percent of the 400m outstanding shares to finish off its purchase. So, Oracle has extended the tender deadline to Jan 4. If it can secure 90 percent of PeopleSoft shares by that date, Oracle can avoid holding a special shareholder meeting to vote on the acquisition.
The PeopleSoft buy, however, will almost certainly go through eventually, as Oracle holds a majority of shares and now controls PeopleSoft's board.
If Oracle doesn't reach the 90 percent mark, its purchase of PeopleSoft will likely be delayed by about a month. ®