Update: Oracle Says PeopleSoft Deal Is Still On

Tuesday morning,The Wall Street Journal reported that Oracle, due to tweaked PeopleSoft customer purchase guarantees, might drop its $7.3 billion bid for that company.

PeopleSoft inaugurated a "money-back" guarantee this summer, telling customers if the company is acquired and product and support policies changed within a certain period, they will get a full refund. Oracle executives have decried that move as an illegal defense against a buyout.

Deborah Lilienthal, an Oracle spokeswoman told CRN the deal is still on however.

"PeopleSoft management's entrenchment tactics continue to destroy the value of the company for the shareholders, but we remain committed to completing the deal," she said.

After the published report Tuesday morning, PeopleSoft shares fell 70 cents to $21.35 and Oracle lost 16 cents per share, falling to $12.41.

Last Friday, a group of dissident PeopleSoft shareholders filed suit in Delaware Chancery Court against the Pleasanton, Calif. company, charging that PeopleSoft's "customer assurance program" prevents the the company's board from accepting even a sweetened bid from Oracle. Potentially the money-back offer could total $800 million, payable by the buying company, PeopleSoft executives have said.

Oracle, Redwood Shores, Calif., launched what has become a $19.50 per share cash offer for PeopleSoft in early June. The suits and countersuits have continued unabated since that time. The U.S. Department of Justice is reviewing Oracle's offer now.

For more on this continuing story, see the CRN PeopleSoft News Center.