Oracle includes JDE in takeover offer

By Iain Scott, ITWeb group consulting editor

Johannesburg, 25 Jul 2003

Oracle is pressing ahead with its plans to acquire rival PeopleSoft, despite the fact that it will have to pay another $1.2 billion to include JD Edwards, recently acquired by PeopleSoft.

Oracle has not increased its offer of $19.50 per share, but it would have to pay $7.5 billion instead of the original $6.3 billion since PeopleSoft issued another 53 million shares as part of its JD Edwards acquisition.

Oracle`s original offer included a condition requiring its consent for any amendment to the merger agreement between PeopleSoft and JD Edwards, essentially resulting in a loophole allowing Oracle to withdraw the offer if JD Edwards became part of the deal.

However, it has filed an amended offer with the US`s Securities Exchange Commission that eliminates that condition.

This formally extends the offer to include JD Edwards.