PeopleSoft faces shareholder revolt

PeopleSoft is facing a revolt from a group of dissident shareholders angered by the refusal of the board of directors to discuss Oracle's $6.3bn offer to buy the software company.

In filings to the US financial authority the Securities and Exchange Commission (SEC), PeopleSoft revealed that some of its shareholders have filed complaints against the board.

All the complaints allege that the board breached its fiduciary duties in relation to the Oracle's offer to buy the firm.

Oracle has been courting PeopleSoft's shareholders ever since the tie-up between PeopleSoft and JD Edwards was first announced.

To date Oracle has persuaded only around 10 per cent of PeopleSoft's shareholders to back its $19.50 per share offer. But the company continues to extend the deadline for its offer.

A group of eight shareholders have filed complaints in the Delaware Court of Chancery.

A further four complaints were filed in the California Superior Court for the County of Alameda, although this action will not be heard until after the Delaware Court passes its ruling.

In its SEC filing PeopleSoft said it believes the claims are "without merit", and that it intends to "vigorously defend" itself against them.