PeopleSoft Snubs Oracle's $6.3 Billion Bid

Friday morning, PeopleSoft's board voted unanimously against Oracle's sweetened $6.3 billion cash offer for the company.

"In making its recommendation, the Board reiterated its previously expressed concern that the offer is not in the best interests of the company's stockholders," according to a statement released early Friday.

PeopleSoft shares closed Thursday at $17.61, and Oracle's new bid is worth $19.50 per PeopleSoft share. Nevertheless, on Friday, PeopleSoft CEO Craig Conway again said Oracle's offer "undervalues the company," in a statement.

Oracle was quick to respond. "Once again, PeopleSoft's board has put management's interests first, ignoring the mounting demands of its shareholders to redeem the poison pill and meet with Oracle," according to a statement from Oracle spokesman Jim Finn.

Thursday, PeopleSoft forged ahead with its stock-or-cash buy of J.D. Edwards shares in its friendly $1.75 billion buyout attempt of that company. PeopleSoft and J.D. Edwards executives have accused Oracle and its Chairman Larry Ellison of launching its PeopleSoft buy solely to disrupt the J.D. Edwards deal and hurt PeopleSoft's business.

Oracle upped its bid for PeopleSoft on Wednesday. In the past two weeks, all three companies have lodged suits and countersuits in what is becoming an increasingly messy battle.

For more on this story, go to CRN's PeopleSoft news center.