Oracle gets extra cash for PeopleSoft bid

Oracle has arranged a further $1.5bn of credit to finance its attempted takeover of rival software vendor PeopleSoft.

Credit Suisse First Boston (CSFB), ABN Amro Bank and other lenders have also agreed to extend the 364-day $5.1bn credit facility originally provided by CSFB to launch Oracle's bid in June 2003.

According to Oracle's filing with the US Securities and Exchange Commission of a 364-day, $1.5bn revolving line of credit provision, the extra cash will finance the supply of working capital for extra fees and expenses in the PeopleSoft bid.

The vendor is waiting for a decision from the US Department of Justice following its anti-trust investigations into the bid. A decision on whether Oracle's intentions are anti-competitive is expected early this year.

PeopleSoft's share price has continued to exceed both Oracle's initial and later enlarged offers, with shares currently trading at $23.

Datamonitor customer relationship management analyst Peter Ryan said: "I'm not really surprised this has taken place. This [credit extension] proves that Oracle is looking to get its hands on PeopleSoft for sure.

"This has been a clash of egos between Larry Ellison and Craig Conway. I guess it's the case that Ellison and Oracle don't want to lose face in the business community."