PeopleSoft says “No” to Oracle again

SAN FRANCISCO: Business software maker PeopleSoft Inc. said its board has again unanimously rejected Oracle Corp.'s $9.2 billion tender offer, a day after 61 percent of PeopleSoft shares were tendered to Oracle.

"PeopleSoft's Board of Directors has met and considered the results of Oracle's unsolicited tender offer and unanimously reaffirmed its previous conclusion that Oracle's latest offer is inadequate," the company said in a statement.

The board decision is likely to mean the two California-based business software makers will return on Wednesday to Delaware Chancery Court where the companies have been scheduled to address PeopleSoft's shareholder rights' plan, known as a "poison pill."

Oracle has sued PeopleSoft to get the pill removed and believes it has a mandate after 61 percent of PeopleSoft shares were tendered to it on Friday. Oracle will again demand in Delaware that the pill be removed. PeopleSoft said Oracle's $24-per-share offer still undervalued the company and said many of its shareholders also believed the all-cash offer was not enough.

"Based on the numerous conversations we have had with our largest stockholders over the past ten days, the Board believes that a majority of our stockholders agree that Oracle's $24 offer is inadequate and does not reflect PeopleSoft's real value," said A. George Battle, chairman of the Transaction Committee of independent directors.

Battle said this majority is composed of stockholders who did not tender their shares on Friday, as well as stockholders who tendered but told PeopleSoft they believe the company is worth more than $24 per share.

Battle said PeopleSoft was "confident that in the time leading to our 2005 Annual Meeting we will continue to demonstrate PeopleSoft's superior value to our stockholders."