Oracle Says Tendered Shares Give It Control of PeopleSoft
SAN FRANCISCO — Business software maker Oracle Corp. said Wednesday that it had taken control of rival PeopleSoft Inc. now that about 75% of its rival’s shareholders have tendered their shares.
PeopleSoft’s board this month reluctantly agreed to a $10.3-billion buyout by Oracle, relenting after an 18-month takeover fight that included courtroom battles and the ouster of PeopleSoft’s chief executive. The board had previously rejected Oracle’s takeover offer several times.
The initial period for the tender offer expired Tuesday, while a subsequent offering period expires Jan. 4, Oracle said in a statement. The deal is expected to close in early January.
Oracle said it now had majority representation on PeopleSoft’s board of directors after it designated four people to serve after the resignation of PeopleSoft board members. Oracle said two current PeopleSoft board members would remain on the board until the takeover was completed.
The announcement comes as Redwood City, Calif.-based Oracle begins the difficult task of integrating the two companies.
Oracle had initially planned on dropping products made by Pleasanton, Calif.-based PeopleSoft when it launched its takeover in June 2003, but has since said it would enhance existing PeopleSoft brands and develop new versions in the future. Oracle also plans to enhance and build new products for J.D. Edwards, the business software maker PeopleSoft bought in 2003 before Oracle’s takeover proposal.
Oracle shares Wednesday fell 12 cents to $13.72, and PeopleSoft rose 8 cents to close at $26.48. Both trade on Nasdaq.
