Oracle wraps up deal with PeopleSoft

Mumbai, Dec 29: After an 18-month takeover saga, which included courtroom battles, Oracle Corp. recently announced that PeopleSoft stockholders have tendered approximately 75% of PeopleSoft outstanding stock, giving Oracle control of the company.

In another related development, David Duffield, founder and CEO of PeopleSoft has stepped down. In a filing with the Securities and Exchange Commission, PeopleSoft stated that Duffield, who founded the company in 1987, resigned his positions of director, board chairman, and CEO on December 21.

Additionally, Oracle has designated four representatives to serve on PeopleSoft’s board of directors, replacing the PeopleSoft board members who have resigned and giving Oracle majority board representation.

The subsequent offering period will permit all stockholders who did not tender their shares earlier, to obtain the $26.50 per share offer price for their shares prior to consummation of the second-step merger.

“The combination of these two companies brings together some of the best products and people in the enterprise applications market, all for the benefit of the customer. We are moving forward quickly with the integration planning process and have been pleased by the level of coordination as we combine the two organizations,” said Larry Ellison, CEO of Oracle.

Now, if at least 90% of the outstanding shares of PeopleSoft are tendered before the expiration of the subsequent offering period, Oracle expects to complete the second-step merger shortly after expiration.

“It’s a part of what you’d expect in the integration of this company,” Charles Di Bona, an analyst at Sanford C. Bernstein in New York, said. “I don’t think Oracle bought PeopleSoft with idea that he was going to be around.” Oracle is known for its competitive culture, and Duffield wanted PeopleSoft to place a premium on treating workers well.

The purchase makes Oracle the No. 2 seller of business applications software, which handles tasks like payroll, accounting and customer management, behind SAP of Germany.

Duffield, who was also chairman, resigned on Dec. 21, PeopleSoft, a maker of business software, said in a regulatory filing on Tuesday. On Dec. 13, the day PeopleSoft accepted Oracle’s $26.50-a-share offer, Duffield sent a letter to employees saying he had been “deeply saddened” by the takeover by Oracle.