Oracle takes control of PeopleSoft

DECEMBER 29, 2004 (IDG NEWS SERVICE) - Oracle Corp. has taken over control of PeopleSoft Inc. by buying 75% of the PeopleSoft's outstanding shares from its stockholders, Oracle announced today.
Oracle has appointed four members to the PeopleSoft board to replace members who resigned after the board agreed on Dec. 13 to sell the company to Oracle for $10.3 billion. The move gives Oracle majority control of the PeopleSoft board; two previous PeopleSoft board members will remain until the merger is completed.
The Oracle announcement comes a day after news broke that PeopleSoft CEO David Duffield resigned on Dec. 21 (see story).
With today's announcement, an 18-month struggle, during which PeopleSoft repeatedly turned down Oracle's offers, has effectively ended.
Despite gaining control of three quarters of the outstanding stock, Oracle didn't reach its goal of acquiring 90% of PeopleSoft stock. After Oracle's first tender offer expired yesterday, the company announced a second tender offer that expires Jan. 4. Stockholders who tender shares during the second offer will be paid the same $26.50 per share paid during the initial offering period.
If Oracle gains control of 90% of PeopleSoft shares, it expects to complete the merger shortly after the second offering period, the company said in a press release. "We're very confident we'll get the 90%," said Bob Wynne, an Oracle spokesman.
If Oracle should fail to acquire 90% of PeopleSoft's stock, the merger would require a vote of the shareholders, with Oracle already controlling a majority. That vote could delay the merger four to six weeks.

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