During a conference call hosted by shareholder adviser firm Glass, Lewis and Co, Oracle castigated PeopleSoft for rejecting its offers, and accused the board of allowing its emotions get in the way of acting in the best interests of shareholders. This claim was reportedly hotly denied afterwards by PeopleSoft which said its full board had met 59 times since Oracle launched its bid and stressed that PeopleSoft’s board was a model of fiduciary responsibility and it was simply a case that it would not sell PeopleSoft for less than it was worth.
Oracle also reiterated that although it hopes to persuade a majority of shareholders to accept the latest $24 per share offer by the deadline, it would withdraw if that does not happen. However, the company did say that although the current price is non-negotiable, it might be willing to extend the bid beyond the deadline if more than 50% of shares were tendered in support of the offer.
Although it is highly unlikely given PeopleSoft’s consistent stance that Oracle has undervalued the company, Oracle is also dangling the prospect of a quick end to the painful 18-month process by saying that if the PeopleSoft board of directors were to change its mind, the final acquisition papers could be signed as early as this weekend.
In a move that it hopes will provide added impetus and give credence to its threat to walk away, Oracle said it is meeting with other potential acquisition targets. Although the company did not specify who they are, during its court case with the US Department of Justice earlier this year it revealed a shopping list that included BEA Systems, Business Objects, Lawson Software, and Siebel Systems.
Meanwhile, reports say a group of PeopleSoft shareholders has asked a Delaware judge to reopen the Oracle-initiated lawsuit, brought to force PeopleSoft to remove its anti-takeover provisions, and order PeopleSoft to drop its poison pill.
