Oracle May Drop Bid to Buy PeopleSoft

Business software maker Oracle Corp. said it might drop its hostile takeover bid for PeopleSoft Inc. because its rival is offering generous customer refunds if the deal goes through.

Redwood City, Calif.-based Oracle filed a sternly worded court motion Monday, demanding that Pleasanton, Calif.-based PeopleSoft halt its Customer Assurance Program. The program guarantees customers will receive refunds of two to five times their initial license fee -- often tens of millions of dollars or more -- if an acquiring company fails to support PeopleSoft products.

In a preliminary injunction motion filed with the Delaware Court of Chancery, Oracle criticized the program as so “draconian” that it could make the takeover “unfeasible.”

From Associated Press