Oracle turns screw on PeopleSoft board

Oracle wants to put five new directors on the board of PeopleSoft who are sympathetic to its controversial takeover bid.

The company said it will solicit proxies to vote in favour of its nominees at PeopleSoft's 2004 annual meeting.

Oracle spokesman Jim Finn said in a statement: "We believe that the incumbent PeopleSoft board of directors has consistently refused to consider its stockholders' best interests regarding the Oracle tender offer.

"We intend to nominate a slate of directors who will exercise independent judgement in considering the Oracle tender offer."

Oracle also intends to introduce a proposal to remove PeopleSoft director Michael Maples.

If PeopleSoft refuses to put Maples up for election, Oracle said it will put forward a proposal to amend PeopleSoft's corporate bylaws and expand the firm's board to nine members.

"This newly-created directorship would be decided by the stockholders at the annual meeting, enabling the PeopleSoft stockholders to elect a majority of the board and determine for themselves who should guide the future of PeopleSoft," said Finn.

"Michael Maples has never been elected by the stockholders, and we believe that he should stand for election at the PeopleSoft 2004 annual meeting of stockholders."