Oracle is now taking on a bigger entity in its hostile bid to acquire PeopleSoft. After Friday`s completion of the JD Edwards purchase, PeopleSoft is now the world`s second largest enterprise applications software company.
After PeopleSoft`s tender offer closed at midnight in New York on Friday it had acquired about 88% of JD Edwards.
It expects to acquire the balance before the end of next month.
"Today marks an important milestone in the history of PeopleSoft," says PeopleSoft president and CEO Craig Conway. "The powerful combination of PeopleSoft and JD Edwards creates the second largest enterprise applications software company in the world."
However, the deal does not appear to have fazed Oracle, which has extended its takeover offer to 15 August.
"We believe time is on our side, " says Oracle spokesman Jim Finn. "Oracle remains committed to acquiring PeopleSoft - even with the addition of JD Edwards."
Oracle announced an offer in June to buy PeopleSoft`s shares for $5.1 billion, just four days after PeopleSoft said it had entered into a definitive agreement to acquire JD Edwards. On 18 June Oracle`s bid was increased to $19.50 a share or $6.3 billion.
Analysts have pointed out that the finalisation of the PeopleSoft/JD Edwards deal does not herald the end of Oracle`s bid, although it does make things more difficult for Oracle.
The deal is sure to make the acquisition more expensive. But in addition to that, JD Edwards director Michael Maples has been elected a member of the PeopleSoft board.
That election makes it tougher for Oracle to gain control of the board, something it has promised to do. Four of PeopleSoft`s directors come up for election next year, and even if Oracle replaces them all, that would not be enough to wrest control, since Maples brings the total number of directors to eight.
Analysts say if Oracle wants to press on with the takeover bid it will probably have to increase its offer.
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