We still want PeopleSoft – Oracle

We still want PeopleSoft – Oracle

By Stuart Finlayson

Despite a number of obstacles remaining in place, and a long and protracted regulatory review of the proposed merger still far from over, Oracle executives have announced that they are still committed to acquiring PeopleSoft.

In a conference call for security analysts in the US, Oracle even went so far as to say it will nominate an alternative set of directors for PeopleSoft's board in January, in accordance with PeopleSoft's new reduced deadline for candidates to be nominated.

Given Oracle's recent accusation of corporate entrenchment on the part of the PeopleSoft board, which recently improved its customer refund scheme in the event of a buyout, a move which Oracle said was self-preservation at its worst and designed to ward off any takeovers, it seems unlikely that many of the present incumbents on the PeopleSoft board will be named on Oracle's proposed new set up.

Speculation has been mounting that the PeopleSoft refund scheme, which would cost Oracle at least US$800 million to cover should they takeover the company, would finally kill off Oracle's bid. This notion was strongly refuted by Oracle's Executive Vice President Chuck Phillips. "We remain committed to acquiring PeopleSoft. There is no merit to the proposition that the deal is dead."

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