Posted by : Anonymous on May 15, 2004 - 02:20 PM General

Business software maker Oracle Corp. reduced its hostile takeover bid for rival Peoplesoft Inc. to $7.7 billion Friday, shaving nearly 20 percent, or $1.7 billion, from its previous offer to reflect its prey's wilting market value.
In its surprise move, Oracle revised its nearly year-old bid for PeopleSoft to $21 per share, reversing from the $26 per share, or $9.4 billion cash, that had been on the table.
Redwood Shores-based Oracle attributed its decision to PeopleSoft's declining stock, which has plunged by 24 percent so far this year as many investors abandoned hope the deal would go through because of a looming antitrust trial. Before Oracle's disclosed its revised bid, PeopleSoft's shares fell 31 cents Friday to close at $17.30 on the Nasdaq Stock Market. In after-hours trading, the shares fell another 30 cents.

Oracle Chairman Jeff Henley reiterated his company's continued interest in buying PeopleSoft, saying ``this deal will benefit stockholders of both companies.''

PeopleSoft didn't immediately return calls Friday. The company's board of directors has previously rebuffed three other Oracle bids, including the peak $9.4 billion price.

Although Oracle continues to pursue PeopleSoft, the chase has been in a holding pattern since late February as the company prepares to defend itself in an antitrust case brought by the U.S. Department of Justice.

The government is seeking an injunction to prevent Oracle from buying PeopleSoft, saying the combination would drive up prices and reduce the product choices for major corporations that need sophisticated software to run their personnel and accounting departments.

Oracle says its will prove regulators wrong in a monthlong trial scheduled to begin June 7.

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On The Net:

http://www.oracle.com

http://www.peoplesoft.com

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