Oracle
Oracle delay

Oracle delay greenlights JD Edwards sale

DoJ inquiry means PeopleSoft could buy JD Edwards before Oracle lawsuit is heard

Gareth Morgan

Oracle's court case relating to its offer for PeopleSoft has been postponed, opening the door for PeopleSoft's bid for JD Edwards to be completed before the case can be heard.

All three parties agreed to postpone the Oracle lawsuit until 25 July, following a decision by the US Department of Justice to seek more information regarding potential antitrust issues.

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PeopleSoft is looking to seal its acquisition of JD Edwards by 18 July, and claimed that Oracle's offer was made only to scupper this deal.

But Oracle insists that its offer is genuine, and believes that the PeopleSoft board is not acting in the best interests of its shareholders by refusing to meet to discuss its latest $6.3bn offer.

"Oracle continues to maintain that PeopleSoft and its board have breached their fiduciary duties to PeopleSoft's shareholders," said Oracle spokesman Jim Finn.

PeopleSoft denies these charges. Speaking to vnunet.com, PeopleSoft spokesman Steve Swasey said that Oracle's insistence on meeting was "ironic", given that it had chosen to announce its bid through the media, rather than speaking directly to PeopleSoft.

"We've considered their offer, based on the information they supplied, and rejected it," said Swasey. "We believe the best option is to proceed with the JD Edwards bid. I don't see what value a meeting would add."

But the delay to Oracle's court case does not signal the end of its battle for control of PeopleSoft. The database giant has already stated that it may consider buying PeopleSoft and JD Edwards.

It could also decide to further increase its offer. This may persuade PeopleSoft's shareholders to demand that their board reconsider its refusal to meet Oracle.

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Further reading

Oracle vs PeopleSoft vs JD Edwards

The pitched battle between Oracle, PeopleSoft and JD Edwards has been a maelstrom of claims, counterclaims, lawsuits, revised offers and speculation. And it looks set to run and run ...

PeopleSoft/JD Edwards gets green light

Acquisition set for early completion; Oracle remains defiant

PeopleSoft sweeteners may sour Oracle bid

'Poisoned carrot' used to seal software deals

Oracle 'forced' to bid for PeopleSoft

PeopleSoft/JD Edwards deal left us no choice, says senior exec

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