Siebel battles for independence
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Programme launched to stop exodus of employees.
31 May 2005 Customer relationship management stalwart Siebel Systems is locked in a desperate attempt to reassure market watchers that it is conducting business as usual despite persistent rumours that it will soon be acquired.
Siebel is pushing ahead with its product roadmap, despite the takeover talk. It has promised a new version of its software will be released in the first half of 2006.
Given that time scale, any prospective purchaser would have to meet those commitments. Siebel 8 is expected to embrace web services standards.
But while Siebel is trying to assuage talk of it being sold, the software maker was last week forced to admit that it is taking emergency measures to ensure the rumours do not destabilise it.
According to a filing with the US Securities and Exchange Commission, employees will be covered against involuntary terminations "without cause" and voluntary resignations "for good reason" for a period of three months before a change of control and one year following any ownership changes
"Recent rumours concerning potential acquisitions or takeovers of the company have created a great deal of uncertainty among the company's employees and executives, which could negatively impact employee productivity and company performance," Siebel said in the filing.
Software maker PeopleSoft used similar tactics to retain employees during its protracted - and ultimately unsuccessful - battle with Oracle.
Siebel faces a number of challenges if it is to remain independent. Its stock price is currently depressed, and nervous investors have been pressuring executives to make use of its substantial cash pile. Recent results have also been disappointing - it replaced its CEO on the back of disappointing results for the quarter ending 31 March 2005.
