Oracle, PeopleSoft chiefs ordered to show e-mails

By Lisa Baertlein

PALO ALTO: Oracle Corporation and PeopleSoft Inc., locked in a hostile takeover battle, face a Thursday deadline to turn over to a Delaware court e-mails from their embattled chief executives, confirmed spokesmen for both companies.

PeopleSoft has alleged that Oracle is withholding e-mails from Chief Executive Larry Ellison in violation of a court-ordered September 23rd deadline.

Oracle spokesman Jim Finn said the company already has turned over all relevant documents and has twice scoured Ellison's computers for e-mail related to Oracle's June 6 tender offer for PeopleSoft.

Delaware chancery court, vice chancellor, Leo Strine on Wednesday gave Oracle 24 hours to produce the Ellison e-mails and to certify that the company has thoroughly searched Ellison's computers, the companies said.

"Complying with that order will be easy for us," Finn told Reuters.

On the other hand, Oracle alleges that PeopleSoft has inappropriately withheld some 2,000 deal-related e-mails to and from its Chief Executive Craig Conway, claiming they are protected under "business strategy" immunity or attorney-client privilege.

Strine set a Thursday deadline for PeopleSoft to provide an affidavit to Oracle certifying that each of the documents is indeed subject to privilege.

"We will meet that deadline," PeopleSoft spokesman Steve Swage said.

Oracle launched its hostile bid for PeopleSoft just four days after its then-smaller rival said it intended to buy software maker JD Edwards & Co. in a deal that would help PeopleSoft unseat Oracle as the No. 2 provider of business management software behind SAP AG of Germany.

PeopleSoft has rejected Oracle's overture. Antitrust regulators in the United States and Europe are reviewing Oracle's $7.3 billion bid.

(C) Reuters