The company disclosed the decision in a regulatory filing on Tuesday. PeopleSoft began its Customer Assurance Program in June when Oracle first launched the surprise bid. Under the plan, customers are entitled between two and five times the cost of the software licence fees if PeopleSoft were acquired and the acquiring company discontinued its products.
PeopleSoft representatives have said the programme has eased customers' fears about losing their investments in PeopleSoft's products and has helped the company keep sales humming.
But Oracle, which could be liable for more than $800m in payments were it to succeed in buying PeopleSoft, said the programme is unfair to PeopleSoft shareholders. Oracle and a number of PeopleSoft shareholders are suing PeopleSoft and have asked the court to order the company to halt the programme.
"This program has never been about customer assurance," an Oracle spokesman said Tuesday in a statement. "It has always been about entrenching the PeopleSoft management team."
Oracle is currently seeking regulatory approval of the deal, which would combine two dominant enterprise applications companies. Oracle expects a decision from the Justice Department in March and faces a proxy battle for control of PeopleSoft's board. Oracle's tender offer, which it has extended six times, is set to expire on 13 February.
PeopleSoft chief executive Craig Conway has declared the Oracle buyout saga over, but recent events suggest PeopleSoft is not yet out of the woods. In addition to continuing the guarantee programme, the company said on Monday that it would repurchase $200m of its own stock, bringing more shares under its control.
