Oracle said Wednesday that it has increased its cash offer for enterprise software maker PeopleSoft to $26 per share, presenting its rival's shareholders with a $9.4 billion hostile takeover bid.
That's massive!
The announcement marks the second time Oracle has raised its offer for PeopleSoft, which specializes in enterprise resource planning and customer relationship management applications, since it first made a bid for the company last June. Oracle's original offer was $16 per share, which the company increased to $19.50 only two weeks later. Wednesday's bid represents a nearly 19 percent premium over PeopleSoft's closing stock price of $21.89 Tuesday.
It looks like Oracle may get it's way with taking over PeopleSoft, although there is still a problem.
Oracle faces several other obstacles in its effort to close the deal, including an antitrust review from the European Commission and PeopleSoft's money-back customer guarantee program that could make Oracle liable for more than $1.5 billion in payments, if the acquisition were to take place.
I found this to be an interesting article.
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