Oracle, the second-largest US global software maker, yesterday sweetened its hostile cash bid for PeopleSoft by 22 per cent, to about $6.3 billion (€5.3 billion), the latest escalation of a vitriolic acquisition battle.
The new, surprise bid at $19.50 a share compares to the original offer of $5.1 billion, or $16 per share, which PeopleSoft rejected. The offer is a nearly 14 per cent premium over PeopleSoft's $17.15 Tuesday closing price on the Nasdaq stock market.
California-based PeopleSoft had been preparing a friendly merger with smaller rival J.D. Edwards before Oracle's offer.
The merger with J.D. Edwards would let PeopleSoft surpass Oracle in the market for such business applications as accounting, purchasing and human resources.
Oracle, which employs more than 1,000 in Ireland, said it would file a lawsuit in Delaware today to rescind that merger.
"Oracle remains committed to acquiring PeopleSoft and will not be deterred by management's manoeuvres to maintain control of a company they do not own," Oracle's chairman and chief executive, Mr Larry Ellison said.
J.D. Edwards spokesman Mr Victor Chayet said: "We remain committed to the amended definitive merger agreement with PeopleSoft and maintain that Oracle's hostile tender offer is disruptive to that agreement."
The sweetened Oracle bid comes two days after PeopleSoft revised its original all-stock offer for J.D. Edwards to a combined cash and share deal that would allow the merger to be completed before Oracle could convince PeopleSoft shareholders to accept its hostile takeover. - (Reuters)
