In the wake of Oracle Corp's latest revision of its bid to acquire PeopleSoft Inc, the latter firm said it believed the hostile bid couldn't be completed at any price because of antitrust obstacles.
Oracle dropped its earlier offer of US$26 a share for PeopleSoft to US$21 a share on Friday. 'Given the significant antitrust obstacles in both the United States and Europe,' PeopleSoft stated, 'we do not believe Oracle's bid can be completed at any price.'
The stocks of both firms dropped marginally in early trading on Monday [US].
PeopleSoft complained about the timing of Oracle's Friday announcement. 'We note that Oracle has timed this announcement on the eve of our annual Leadership Conference,' PeopleSoft stated. 'This is one more instance of what we firmly believe is Oracle's ongoing effort to damage our business.'
The battling database companies were gearing up for an antitrust trial in San Francisco next month, as Oracle was contesting a decision by the US Justice Department's Antitrust Division ruling against Oracle's hostile takeover attempt of PeopleSoft. The case hinges primarily on market-share figures, with Oracle arguing for a broadly based market with numerous competitors, while PeopleSoft and the DOJ maintain that the market is narrowly focused and dominated by Oracle and PeopleSoft.
Oracle's Chairman and CFO Jeff Henley said the firm's revised offer reflected changes in market conditions and valuations. 'Our new offer represents a premium of 21 percent over PeopleSoft's closing price today [Friday] of US$17.30,' Henley said in a statement. 'That's a higher premium than our previous offer was on the date made, calculated on both a single day and 30-day moving average. I believe that this deal will benefit stockholders of both companies.'
The trial, in US District Court in San Francisco, is scheduled to get underway 7June, with a decision expected before fall [US]. Regulators at the European Union's Competition Directorate were also investigating Oracle's bid.
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