Oracle renews PeopleSoft charm offensive

Oracle has sent letters to PeopleSoft shareholders in an attempt to persuade them to back its $9.3bn (£4.9bn) hostile bid for the company, asking them to vote Oracle-nominated candidates onto PeopleSoft's board.

The letter, signed from Oracle chief executive Larry Ellison and chairman Jeff Henley, insisted that $26 per share would remain Oracle's final price for PeopleSoft, and added: "We believe it represents a compelling value for all PeopleSoft stockholders.

"By rejecting our offer, PeopleSoft's directors have sought to deny you - the true owners of PeopleSoft - the opportunity to sell your shares to Oracle for a substantial premium in an all-cash offer."

The letter called on shareholders to vote five Oracle candidates onto the board of PeopleSoft. The vote will take place at the annual general meeting on 25 March.

The move comes after the European Commission restarted its investigations into Oracle's hostile takeover bid.

The Commission decision effectively restarts the clock on its investigation of the bid, which it suspended last month to wait for information from both companies.

A ruling is expected by 11 May, before the final decision of parallel investigations by the US Department of Justice (DoJ) into the bid is likely to be announced.

A PeopleSoft spokesman told vnunet.com that the company's board of directors would continue to oppose Oracle's advances in light of the ongoing investigations by the European Commission and DoJ.