Anyone else think that JDE is coming SSA's way now??
Oracle, PeopleSoft agree merger terms
Litigation cancelled as $26.50 per share cash offer is approved by boards
By Madeleine Acey, CBS.MarketWatch.com
Last Update: 6:55 AM ET Dec. 13, 2004
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LONDON (CBS.MW) - PeopleSoft Inc. on Monday said its board had agreed to $10.3 billion takeover terms from Oracle Corp. ending a year and half of a bitter acquisition battle.
PeopleSoft (PSFT: news, chart, profile) secured a final price of $26.50 per share in cash. Oracle's (ORCL: news, chart, profile) last offer had been for $24 a share. Oracle said on Monday the deal should be completed by early January.
PeopleSoft's board has spurned five Oracle takeover bids during the past 18-months and maintained that the $24 offer didn't value the company fairly. The companies had been due to face off yet again in a Delaware courtroom this week as a judge was set to consider Oracle's request to ban PeopleSoft's "poison pill" takeover defense.
PeopleSoft shares were bid up 9 percent in speculative pre-open trade at $26.10.
PeopleSoft's last word on the Oracle battle on Friday had been that it would hold its annual shareholder meeting on March 25 and nominated four current directors for contested board seats, setting the stage for a final showdown with the larger company which had nominated candidates of its own to secure the boardroom.
"After careful consideration, we believe this revised offer provides good value for PeopleSoft stockholders and represents a substantial increase in value from October," PeopleSoft said. "PeopleSoft is a strong and vibrant company. Our fourth quarter numbers have been running ahead of plan."
Oracle and PeopleSoft will each stay all pending litigation and will dismiss such litigation permanently following the consummation of the offer. The offer, PeopleSoft said, is subject to at least a majority of the fully diluted outstanding shares being tendered.
Oracle said it sees earnings boosted by 1 cent a share in the fiscal fourth quarter after the deal, and by 8 cents a year in fiscal 2006.
Oracle on Friday moved up its second-quarter reporting to early Monday, it had been scheduled for Thursday.
The company said net income rose to $815 million, or 16 cents per share, from $617 million, or 12 cents per share, in the year-earlier quarter. Overall revenue for the period jumped 10 percent to $2.76 billion and software revenue increased 13 percent to $2.22 billion. Analysts polled by Thompson First Call had expected EPS of 14 cents per share on revenue of $2.6 billion. Oracle said second-quarter operating margin rose to 41 percent versus 37 percent last year.
Oracle shares closed down 0.08 percent on Friday at $13.28.