Oracle Ups The Bid For PeopleSoft
The corporate battle between Oracle and PeopleSoft continues as Oracle ups its bid to take over rival software maker PeopleSoft. Oracle "sweetened the deal" by 22% offering PeopleSoft shareholders a price of $19.50 a share, up from its original bid of $16.00 a share last week.
The Board of PeopleSoft will "consider" the revised offer, but is still fighting to maintain control of the company. They are urging shareholders to "take no action at this time."
Meanwhile, the state of Connecticut filed a federal lawsuit trying to block the hostile takeover, claiming that it violates both state and federal antitrust laws.
Connecticut recently signed a five year deal with PeopleSoft and spent over $80 million to upgrade its systems and train its people in the migration towards PeopleSoft products. The state is concerned that a takeover of the company would result in an abandonment of the PeopleSoft product line, causing the state to lose tens of millions of dollars.
Oracle spokespeople have indicated that they plan on supporting the current PeopleSoft product line, but do not envision offering the product to any new customers.