Oracle ups the ante in PeopleSoft fight

Determined predator increases bid to $9.4bn

vnunet.com, 05 Feb 2004

Oracle has increased its bid for PeopleSoft despite previously insisting that it would not do so before the release of European and US anti-competition rulings.

The database giant has raised its offer from $7.3bn to $9.4bn, or $26 per share, until the end of the year.

This amounts to an 18.8 per cent premium on PeopleSoft's share price, which stood at $21.89 on 3 February.

Jeff Henley, chairman and chief financial officer at Oracle, said in a statement: "This is our final price. We urge PeopleSoft's directors to seriously consider our offer and put the interests of their stockholders first.

Oracle chief executive Larry Ellison said in a statement: "We believe this acquisition is pro-competitive, and will benefit the customers of both companies. We stand by our pledge to support the PeopleSoft customer base."

PeopleSoft, which has rejected two previous bids from Oracle, has advised its stockholders to take no action at this time.

The company said in a statement: "PeopleSoft's board of directors, consistent with its fiduciary duties, will meet to review and discuss Oracle's revised tender offer and will make its recommendation to PeopleSoft stockholders in due course."