- The Washington Times - Monday, December 13, 2004

SAN FRANCISCO (AP) — Oracle Corp. finally scooped up bitter rival PeopleSoft Inc. after 18 months of legal and verbal strife, ending a feud with a $10.3 billion deal that promises to shake up the business software industry.

Oracle sealed the agreement, announced yesterday, by upping its all-cash offer by 10 percent to $26.50 per share.

The final offer represents a 75 percent premium from PeopleSoft’s market value before Oracle began the takeover battle in June 2003.

“A lot of people compared us to Don Quixote tilting at windmills, but finally we now have PeopleSoft,” Oracle’s Chief Executive Officer Larry Ellison said. “Clearly, it’s a great feeling. It’s not that I wanted to win just for the sake of winning. It’s the fact that PeopleSoft is instrumental to our strategy.”

The agreement ends a fight that cost PeopleSoft CEO Craig Conway his job and took more than $1 billion in sales from PeopleSoft.

On his road to victory, Mr. Ellison fought and beat the Justice Department, which sued to stop the bid, asserting it would reduce competition. Oracle persuaded European Union officials to approve the offer in October.



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