Sign in Subscribe
Software industry

Oracle Aborts Legal Challenge to PeopleSoft, Sets Stage for Potential Takeover

Strategic Insights

— 2 min read

Oracle Corp., the business software company, has announced plans to drop its legal challenge to PeopleSoft Inc.'s antitakeover protections in the event that shareholders fail to tender a majority of their shares by the November 19 deadline. The decision marks a significant shift in Oracle's strategy, which had previously warned that the price it was willing to pay for PeopleSoft could drop. As the legal battle unfolded, Oracle leaders repeatedly emphasized that their offer for PeopleSoft was likely to decrease, raising concerns about the company's commitment to the acquisition. In a letter to the Delaware court, Oracle's attorney, Michael Carroll, stated that the company would abandon its effort to invalidate PeopleSoft's corporate defenses if the tender offer expires without obtaining at least 50 percent of PeopleSoft's shares.

Key Takeaways:

  • Oracle has agreed to drop its legal challenge to PeopleSoft's antitakeover protections if shareholders fail to tender a majority of their shares by November 19.
  • The decision marks a significant shift in Oracle's strategy, which had previously warned that the price it was willing to pay for PeopleSoft could drop.
  • PeopleSoft's antitakeover protections include a standard "poison pill" and a special customer program that Oracle has sought to invalidate.
  • The court case has been closely watched, with Oracle leaders repeatedly emphasizing that their offer for PeopleSoft was likely to decrease.
  • If the tender offer expires without obtaining at least 50 percent of PeopleSoft's shares, Oracle will drop its challenge to PeopleSoft's corporate defenses.
  • Microsoft has announced settlements with rival Novell Inc. and a Washington, D.C.-based trade organization, totaling $536 million.
  • The Securities and Exchange Commission is investigating major brokerage firms for allegedly executing trades that favor the firms at the expense of customers.
  • Kmart has launched the Kmart Rewards credit card with rewards, offering $10 off the first card purchase and $10 for every $250 in account purchases.
  • Murray Inc., a lawnmower manufacturer, has filed for bankruptcy protection, citing reduced profits and inadequate cash resources.
  • BT Group has acquired Infonet Services Corp. for $965 million, improving its position in the North American and Asian markets.
  • Molson Inc. will spend $29.3 million on a new brewery in New Brunswick, seeking to reverse a decline in Canadian market share.
  • Cdigix has signed deals with several new universities to provide students with legal Internet downloads of music, video, and educational course materials.
  • Level 3 Communications has won a contract to provide voice-over Internet services to NextWeb, a California-based fixed wireless Internet service provider.

Statistics:

  • Oracle has agreed to drop its challenge to PeopleSoft's antitakeover protections if shareholders fail to tender a majority of their shares by November 19.
  • Microsoft has announced settlements totaling $536 million.
  • The Securities and Exchange Commission is investigating more than a dozen major brokerage firms.
  • Kmart has launched the Kmart Rewards credit card with rewards.
  • Murray Inc. has filed for bankruptcy protection, citing reduced profits and inadequate cash resources.
  • BT Group has acquired Infonet Services Corp. for $965 million.
  • Molson Inc. will spend $29.3 million on a new brewery in New Brunswick.

Sources:

  • News staff
  • The Associated Press
  • Bloomberg News
  • Scripps Howard News Service
  • The New York Times

Read more