PeopleSoft rejects new Oracle bid
The software maker's board of directors once again spurns Oracle's attempt to buy the company, saying that even though the price is higher, it's still not enough.
The board of the business software maker also asserted that such a merger would face "substantial regulatory delays and a significant likelihood that the transaction would be prohibited." Oracle also competes in the enterprise software market. Combined, the two companies would likely be second only to Germany's SAP in the business software market.
Earlier this week, Oracle increased its offer for PeopleSoft from $5.1 billion to $6.3 billion. PeopleSoft had formally rejected the earlier bid as well, on essentially the same grounds.
The hostile takeover has let loose several lawsuits among the companies. Connecticut's attorney general has also filed suit against Oracle, asserting that the bid would "directly damage the state and its economy and raise prices...by significantly reducing competition in the markets PeopleSoft serves."
Connecticut Attorney General Richard Blumenthal said Thursday that his office has met with Oracle executives and received a letter from Oracle CEO Larry Ellison. But the sales pitch does not appear to be working.
"Nothing we have learned so far has diminished our determination to pursue this antitrust enforcement action," Blumenthal said in Thursday's statement.
Meanwhile PeopleSoft has moved forward with its own bid to acquire J.D. Edwards. PeopleSoft recently sweetened its bid for J.D. Edwards. On Thursday, PeopleSoft initiated the formal exchange offer for the merger.