PeopleSoft has again rejected Oracle`s offer to buy the group, even though more than 60% of its shares have been tendered to its rival.
Oracle announced at the weekend that about 228.7 million PeopleSoft shares had been validly tendered in Oracle`s all-cash $9.2 billion offer for PeopleSoft.
"The owners of PeopleSoft have spoken and have overwhelmingly chosen to sell to Oracle at $24 per share," says Oracle CEO Larry Ellison. "We are prepared to enter into a definitive merger agreement as early as this weekend."
Oracle at the weekend sent a letter to the PeopleSoft board, signed by Ellison and chairman Jeff Henley, informing PeopleSoft of the results of the offer and requesting a meeting to finalise a merger agreement.
"We are prepared to complete and pay for the acquisition of all outstanding shares of PeopleSoft upon satisfaction of the remaining conditions, which are all in your control," the letter says.
However, the PeopleSoft board has responded by unanimously reaffirming its earlier statement that Oracle`s offer is inadequate and that PeopleSoft is worth substantially more than Oracle is offering.
Battle prolonged
"Based on the numerous conversations we have had with our largest stockholders over the past 10 days, the board believes that a majority of our stockholders agree that Oracle`s $24 offer is inadequate and does not reflect PeopleSoft`s real value," says George "Skip" Battle, chairman of the transaction committee of independent directors.
"This majority is comprised of stockholders who did not tender their shares, as well as stockholders who tendered but told us they believe PeopleSoft is worth more than $24 per share."
PeopleSoft says on 10 November members of the transaction committee contacted Oracle and advised it that PeopleSoft would be willing to discuss an offer at an appropriate price, but not $24.
"Oracle`s only response has been to repeatedly state that its $24 per share offer is 'best and final` and that it will not pay a penny more to PeopleSoft stockholders," PeopleSoft says.
Oracle has announced that it is extending its offer to the evening of 31 December. It had said earlier this month that the bid would be withdrawn if a majority of shareholders had not accepted the offer by the end of last week.
PeopleSoft`s rejection of the offer is certain to prolong the battle, which has now been waged for 17 months.
On Wednesday, Oracle is heading to court to ask for the removal of a measure implemented by PeopleSoft to prevent a takeover. This is known as a "poison pill".
Analysts say if the court does not remove the poison pill, the next measure open to Oracle is to nominate candidates to the PeopleSoft board who are more amenable to a merger.
Related story:
PeopleSoft saga almost over
Share
