Posted on: Tuesday, November 16, 2004
Oracle uses forum to attack PeopleSoft board
By Michael Liedtke
Associated Press
SAN FRANCISCO — Business software maker Oracle Corp. attacked the credibility and motives of PeopleSoft Inc.'s board of directors yesterday, hoping to rally investor support as the 17-month takeover battle between the bitter business software rivals nears a climactic showdown.
Two of Oracle's top executives, co-president Safra Catz and chief financial officer Harry You, used a forum hosted by shareholder advisory firm Glass, Lewis & Co. to tout its $9.2 billion takeover bid and ridicule the PeopleSoft directors for staunchly opposing the deal.
San Francisco-based Glass Lewis said PeopleSoft declined an invitation to participate in the hourlong question-and-answer session.
PeopleSoft's seven directors have snubbed Oracle five times, with the latest rejection coming last week.
Although PeopleSoft's board has concluded the $24-per-share offer undervalues the company, Oracle still hopes to persuade a majority of PeopleSoft's shareholders to accept the bid by midnight Friday.
Unless a majority of PeopleSoft shareholders signal their willingness to sell at $24 per share, Oracle has vowed to withdraw the offer — a resolve that both Catz and You reiterated during yesterday's hourlong conference call.
Both Oracle executives said the current price was non-negotiable, although they said they might be willing to extend the bid beyond the Friday deadline if more than 50 percent of PeopleSoft's shares support the offer.
"This is the final chance for getting a deal done," Catz said. If PeopleSoft's board relents, the final acquisition papers could be signed as early as this weekend, Catz said.
But a truce appears unlikely.
PeopleSoft's board maintains that Oracle needs to raise its bid to reflect the company's improving financial performance. When the board spurned Oracle last week, PeopleSoft raised its 2005 earnings projections more than 25 percent above analysts' expectations — a move You and Catz ridiculed yesterday as wishful thinking.
Catz also asserted that PeopleSoft's directors, led by CEO Dave Duffield, are allowing their emotions to get in the way of acting in the best interest of shareholders.
