Oracle guns for control of PeopleSoft board
Oracle guns for control of PeopleSoft board
Oracle has announced four candidates to compete against PeopleSoft's directors in the re-election fight at the annual shareholders meeting next year, in an attempt to control the company completely.
PeopleSoft dropped the size of its board to seven members last month, and the four seats to be opposed by Oracle include the seats held by the PeopleSoft chairman and chief executive David Duffield, vice chairman Aneel Bhusri and independent directors Steve Goldby and Michael Maples.
Oracle hopes that its candidates will be elected to quash PeopleSoft's anti-takeover bid, known as the poison pill.
Jeff Henley, Oracle's chairman of the board talked about how eager he is to get the take over bid completed.
"We believe it is time to bring this matter to a close, for the good of PeopleSoft's shareholders, customers, and employees. We are prepared to complete and pay for the acquisition of all of the outstanding shares of PeopleSoft upon satisfaction of the remaining conditions, which are all in the control of the PeopleSoft Board."
Oracle sent a letter to PeopleSoft's board of directors this week, requesting a meeting to enter into a final merger agreement. It offered US$24 per share, making the deal worth US9.2 million.
However, PeopleSoft has rejected this offer by saying that they thought the shares were worth more than US$24.
A statement on the PeopleSoft website said: "Based on the numerous conversations we have had with the company's largest stockholders, our board is convinced that a majority of our stockholders agree with us that Oracle's $24 offer substantially undervalues PeopleSoft.
"We believe that Oracle has nominated this slate to allow Oracle to purchase PeopleSoft for an inadequate price that does not reflect the company's real value."
U.S. judge, Vice Chancellor Leo Strine has postponed the takeover decision until December because he wants more details on Oracles' revised takeover offer and why PeopleSoft rejected the US$24 share offer.
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