Oracle makes 'final bid' for PeopleSoft

04 Feb 2004 15:13

Oracle has again increased its cash offer, but says this will be the last attempt to acquire its rival

Oracle said on Wednesday that it has increased its cash offer for enterprise software maker PeopleSoft to $26 per share, presenting its rival's shareholders with a $9.4bn (£5.1bn) hostile takeover bid.

The announcement marks the second time that Oracle has raised its offer for PeopleSoft, which specialises in enterprise resource planning and customer relationship management applications, since it first made a bid for the company last June. Oracle's original offer was $16 per share, which the company increased to $19.50 only two weeks later. Wednesday's bid represents a nearly 19 percent premium over PeopleSoft's closing stock price of $21.89 on Tuesday.

PeopleSoft did not immediately return calls seeking comment on Oracle's latest offer.

Oracle said the current offer would be the database-software giant's last bid for PeopleSoft. In a statement, Oracle chairman Jeff Henley encouraged PeopleSoft shareholders to consider the offer seriously.

"This is our final price," Henley said in the statement.

"Given PeopleSoft's current prospects, including its recent downward revisions to earnings guidance for the first quarter, we believe our offer presents compelling value to PeopleSoft's stockholders," he said. "Oracle remains fully committed to completing this deal on terms that will benefit the stockholders of both companies."

Story URL: http://news.zdnet.co.uk/itmanagement/0,1000000308,39145483,00.htm