Shocker: PeopleSoft Nixes Oracle's Latest Offer

Barbara Darrow

February 09, 2004, 10:19 AM EST

In a statement Monday morning, PeopleSoft said its board of directors had "voted unanimously to recommend that PeopleSoft stockholders reject" Oracle's revised and unsolicited $9.4 billion cash offer.

Oracle upped its $19.50-per-share bid to $26 last week (See story.) In a statement at that time, Oracle Chairman and CFO Jeff Henley characterized that as Oracle's final offer. Last Wednesday morning, that price represented an 18.8 percent premium over PeopleSoft's share price of $21.89 per share late Tuesday. Monday morning shares were trading at around $22.25.

But PeopleSoft's board, which Oracle has accused of not acting in shareholders' best interest, said the revised offer is "inadequate and does not reflect PeopleSoft's real value."

PeopleSoft CEO Craig Conway, who stands to reap a lucrative severance deal in the event of a change in ownership, said in a statement that "the board believes that PeopleSoft has a better plan for stockholders."

The battle has come across as an intensely personal one between Conway and Oracle CEO Larry Ellison, Conway's former boss. At one point, the two men traded jibes in the press over whether or not Ellison would shoot Conway's dog.

For more on this continuing story, see CRN's PeopleSoft news center.