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x rays Oracle determined to buy PeopleSoft Regulatory defence readied despite obstacles `We're going to hang in there,' Ellison declares NEW YORK—Despite continued skepticism from Wall Street and Silicon Valley, Oracle Corp. plans to plough ahead with its attempt to buy business software maker PeopleSoft Inc., regardless of what obstacles may block its path. The world's second-largest software company is drawing up plans to nominate a slate of directors to run for PeopleSoft's board, should the fight get that far. Its lawyers also are readying a defence for any possible regulatory opposition to the proposed $7.3 billion (U.S.) deal, said people familiar with the plans. Analysts and investors said they think Oracle will have to pony up more than the $19.50 per share it is offering to spur shareholders to rid the company of poison pill defences designed to thwart a takeover — if and when it gets antitrust clearance for the acquisition from the United States and Europe. Oracle has said it sees no reason to discuss any change in price now, but the company signalled some flexibility over the summer on the condition PeopleSoft negotiate a friendly deal, people close to the talks said. Redwood Shores, Calif.-based Oracle offered more than $100 million in the form of a break-up fee to help underwrite any risk of regulatory opposition, and also invited PeopleSoft to name its own break-up fee figure, these people said. Oracle "made multiple entreaties to PeopleSoft that there was flexibility in a number of areas, which were rebuffed," one person said. PeopleSoft officials denied Oracle ever offered any such flexibility. The board reviewed and rejected the initial $16-a-share offer and the sweetened $19.50-a-share bid. "Beyond that, there has been no phone conversation, meeting or exchange whatsoever between PeopleSoft and Oracle," a PeopleSoft spokesperson commented. Oracle's swashbuckling chief executive, Larry Ellison, professed his determination to complete the takeover in an interview with Reuters last week, although he did not discuss or address any of the details outlined by other sources. "However long it takes, we're going to hang in there," Ellison said. "I don't think there is any doubt that we will get the company. We will get PeopleSoft." That contrasts starkly with the view of PeopleSoft chief executive Craig Conway. He pronounced the deal "dead" in a recent interview. Ellison likened the situation to selling a house, calling PeopleSoft shareholders the owners and Conway, who owns a small percentage of his company's shares, a renter. "The shareholders want to take the offer, but Conway has staggered boards and poison pills and all sorts of other little devices to prevent the owners from selling the house," Ellison said. Meanwhile, U.S. officials have begun questioning Oracle's customers, a move that lawyers say could — but doesn't definitively — signal they are preparing to block the deal. Also, PeopleSoft said on Monday its quarterly profits would be higher than originally anticipated, which could add another complication to the Oracle bid. REUTERS NEWS AGENCYOracle determined to buy PeopleSoft Regulatory defence readied despite obstacles `We're going to hang in there,' Ellison declares NEW YORK—Despite continued skepticism from Wall Street and Silicon Valley, Oracle Corp. plans to plough ahead with its attempt to buy business software maker PeopleSoft Inc., regardless of what obstacles may block its path. The world's second-largest software company is drawing up plans to nominate a slate of directors to run for PeopleSoft's board, should the fight get that far. Its lawyers also are readying a defence for any possible regulatory opposition to the proposed $7.3 billion (U.S.) deal, said people familiar with the plans. Analysts and investors said they think Oracle will have to pony up more than the $19.50 per share it is offering to spur shareholders to rid the company of poison pill defences designed to thwart a takeover — if and when it gets antitrust clearance for the acquisition from the United States and Europe.
Approximate Word count = 2426
Approximate Pages = 9.7
(250 words per page double spaced)
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