Oracle Eases Its Stance on Offer
Oracle Corp. Chief Executive Larry Ellison said Tuesday that he wouldn’t rule out upping his company’s hostile tender offer for rival PeopleSoft Inc., reaffirming his determination to strike a deal even as antitrust regulators mulled over their response.
Speaking to Oracle customers in London, Ellison said he believed the current $6.3-billion offer was “fully valued and very fair” and one most PeopleSoft shareholders would accept. When asked whether he would raise the bid if necessary, Ellison replied, “Never say ‘never.’ ”
Back in the United States, at least three state attorneys general exchanged information on the proposed takeover in a conference call. Other states will soon be invited to form a working group to investigate whether an Oracle-PeopleSoft combination would be bad for competition, according to a person familiar with the situation.
The conference call was initiated by Connecticut Atty. Gen. Richard Blumenthal, who has sued to stop the acquisition. California and Texas officials participated, but said they were far from deciding to take action. “We’re monitoring developments, and we have no plans to intervene,” said Tom Dresslar, a spokesman for California Atty. Gen. Bill Lockyer.
A spokesman for Texas Atty. Gen. Greg Abbott described the conference call as “a standard fact-finding process that typically happens anytime there is word of a proposed merger or takeover bid that affects states or state government.”
Agencies in the three states buy software from Oracle, PeopleSoft or both.
Also on Tuesday, Oracle said it would drop one of the conditions giving it the right to change its mind about acquiring PeopleSoft. The company said it would waive the right to back out should Pleasanton, Calif.-based PeopleSoft change the terms of its planned merger with J.D. Edwards & Co. -- as PeopleSoft did last week.
PeopleSoft dismissed the step by Oracle, saying that the Redwood City, Calif.-based company has set other conditions “that still cannot be met.”
PeopleSoft spokeswoman Dee Anna McPherson said that in recommending against the Oracle offer, the company’s board had said it expected a prolonged antitrust review by the federal government.
Although a higher offer would be considered by the board, she said, the possibility of such a review would be a major argument against it.
“Price per share is just one factor. We have to take a look at whether we think it will pass regulatory scrutiny,” she said.
The Justice Department is expected to decide by Monday whether to ask the companies for information about the proposed deals, a step that could delay any transaction.
PeopleSoft shares rose 5 cents to $17.90, below Oracle’s offer of $19.50. Oracle stock dipped 12 cents to $12.65. Both trade on Nasdaq.
