Oracle Makes Bold Takeover Bid For PeopleSoft
Software giant Oracle Corporation has announced its intention to acquire software maker PeopleSoft for $5 billion. This tender offer comes less than a week after PeopleSoft announced its intentions to acquire J.D. Edwards in a move that would have made it a tougher competitor to Oracle.
"The acquisition of PeopleSoft will immediately make Oracle an even more profitable and competitive company," said Oracle’s Chairman and CEO, Larry Ellison. "Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support for all PeopleSoft products. Furthermore, we will be incorporating the advanced features from the PeopleSoft products into future versions of the Oracle eBusiness Suite."
Oracle has indicated that if the PeopleSoft acquisition goes through, it will consider whether, or on what term, it would support the J.D. Edwards acquisition.
PeopleSoft President and CEO Craig Conway commented on Oracle's cash tender offer calling it "atrociously bad behavior from a company with a history of atrociously bad behavior. Obviously it is a transparent attempt to disrupt the acquisition of J.D. Edwards by PeopleSoft announced earlier this week," said Conway.
Update 6-12-03: On Thursday, PeopleSoft rejected Oracle's offer stating that Oracle's bid was too low and that it would raise antitrust scrutiny. PeopleSoft said that it will proceed with its acquisition of software company J.D. Edwards, which was announced four days before Oracle's bid.