San Francisco (June 23, 2003) -- PeopleSoft has urged stockholders to reject Oracle’s sweetened $6.3 billion takeover offer, saying the price was still too low and that regulators might object to the deal.
PeopleSoft said its board of directors voted unanimously to recommend rejection of the hostile bid, which Oracle raised by more than $1 billion over its initial $5.1 billion offer.
"Oracle's offer undervalues the company and is not in the best interest of PeopleSoft stockholders," said PeopleSoft president Craig Conway said. "It is highly conditional, faces significant regulatory delays and uncertainty, and threatens serious damage to our business."
PeopleSoft based its opinion partly on the future value expected from the company's planned $1.75 billion acquisition of software maker J.D. Edwards. On Thursday, PeopleSoft began its tender offer for that company.
-- WebCPA staff
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