The PeopleSoft board has rejected rival Oracle`s "best and final offer" to buy the group at a price of $24 a share.
PeopleSoft is also recommending to its shareholders that they turn down Oracle`s offer.
Oracle says its offer, worth about $8.8 billion, will be withdrawn in the event that a majority of shares have not been tendered by midnight (Eastern Standard Time) on 19 November.
"After receiving an affirmative clearance decision from the European Commission, we submitted our best and final offer to the PeopleSoft board," says Oracle CEO Larry Ellison.
"Oracle`s board deliberated and concluded that the absolute maximum amount we were prepared to pay was $24 a share. Beyond that, there are better uses of our capital, including other acquisitions and repurchasing our own shares.
"Oracle has been at this for a year-and-a-half and it is now time to bring this matter to a close. On 19 November, we will respect the will of the shareholders."
However, David Duffield, PeopleSoft chairman and CEO, says the PeopleSoft board rejected the latest offer after careful consideration, including a thorough review with financial and legal advisors, and acted on the unanimous recommendation of its transaction committee of independent directors.
"The board concluded that PeopleSoft is worth substantially more than Oracle`s latest offer," he says.
"We are a vibrant, strong company with a focused, motivated management team and employee base dedicated to executing on the company`s plan."
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