Oracle: PeopleSoft Taking Value From Shareholders

Oracle, which is in the midst of a hostile takeover bid for the Pleasanton, Calif., software maker, issued the statement in response to PeopleSoft's announcement last week that it would increase workers' severance benefits in the event of a takeover. The company defended the move as a way to retain employees.

Oracle denied industry speculation that PeopleSoft's actions would raise the cost of the acquisition, but said it "lowers the value of PeopleSoft and is just the latest in a long string of measures that takes value away from the PeopleSoft shareholders."

Oracle's $7.7 billion takeover bid has heated up since a federal judge ruled Sept. 10 that it could pursue its rival. The ruling in favor of the Redwood Shores, Calif., company cleared the bid of antitrust objections raised by the Department of Justice.

*This story courtesy of TechWeb.com.