PeopleSoft Spurns Oracle's Takeover Bid

By Agence France-Presse Business software firm PeopleSoft Inc. rejected a hostile takeover bid from Oracle Corp. June 12, saying it would hurt the company and may have faced antitrust obstacles. PeopleSoft, based in Pleasanton, Calif., described the $5.1 billion bid as an effort to "disrupt" the company as it was seeking to acquire another rival, J.D. Edwards. The board of PeopleSoft "concluded that the offer would undoubtedly face lengthy antitrust scrutiny, with a significant likelihood that approval would not be granted," the company said in a statement. "The board believes that the delays and uncertainties created by Oracle's offer, coupled with Oracle's stated intent to discontinue PeopleSoft's market-leading products, represent a substantial threat to stockholder value. The unsolicited and hostile nature of the offer, combined with Oracle's statements, is designed to disrupt the company's strong momentum at significant cost to PeopleSoft's customers." The Oracle bid came four days after PeopleSoft announced a friendly takeover for rival J.D. Edwards. The PeopleSoft board "reaffirmed its strong commitment to PeopleSoft's acquisition of J.D. Edwards," according to the statement. Oracle Chairman and CEO Larry Ellison, who built the Redwood City, Calif.-based software giant, had said a deal with PeopleSoft would "immediately make Oracle an even more profitable and competitive company." Copyright Agence France-Presse, 2003