Oracle bid for PeopleSoft raised to $24 a share

Oracle has made what it claims will be its “final” offer for rival software maker PeopleSoft, raising its bid to $8.8 billion.


Having received clearance from European and US competition regulators, Oracle has made its fifth bid for PeopleSoft, with a final outcome now expected by 19 November 2004.

“The PeopleSoft Board of Directors is the only obstacle to stockholder consideration of our offer,” wrote Oracle’s Chairman, Jeff Henley, in a letter to PeopleSoft’s Board of Directors, also signed by Chief Executive Larry Ellison.

“Although our $24 price is final and non-negotiable, we are ready to negotiate the other terms of a merger agreement,” he added.

Oracle had previously offered PeopleSoft shareholders $21 per share – a figure rejected by PeopleSoft’s board as undervaluing the company.

Oracle plans to appeal to the Delaware Chancery Court if a majority of PeopleSoft shares are tendered but PeopleSoft fails to remove its poison pill.

If successful in its bid, Oracle plan to maintain an engineering base at PeopleSoft’s Pleasanton campus and intend to introduce new versions of PeopleSoft products.

The offer will expire at midnight on 19 November 2004.

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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