Peoplesoft vs. Oracle

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PeopleSoft vs. Oracle Oracle and PeopleSoft were companies that developed and installed software for Enterprise Resource Planning (ERP), which allowed business customers to integrate all data processing in a company across utilities (Boatright, 341). In the past, Oracle considered an acquisition and merger with PeopleSoft, but a disagreement between the two companies after a year of engaging in talks, ultimately abandoned after a hostile bid was initiated (Boatright 341). The bid began with a spontaneous cash tender offer at $16.00 per share in June 2003 and ended with a negotiated deal at $26.50 per share in December 2004. Furthermore, the merger branded Oracle as the “master” and PeopleSoft as the “slave”, sighting only interest in PeopleSoft’s cliental, rather than its software and employees. At the same time, PeopleSoft’s had an interest in acquiring J. D. Edwards, which seemed to upset Oracle. Overall, the deal seemed scandalous, but how did PeopleSoft ensure they were not going down without a fight, before the final deal was done and Oracle’s acquisition of the PeopleSoft for $10.3 billion Why did the executives of PeopleSoft reject the unsolicited takeover from Oracle Corporation? The reading suggests that the takeover was a ploy, to prevent the company’s acquisition of J. D. Edwards and damage PeopleSoft’s business, in doing so. The deal depended on the ability of PeopleSoft maintaining its stock price through trade of stock to acquire J. D. Edwards. Oracle’s mission was to deter new customers from purchasing PeopleSoft applications because of the uncertainty over the future of the company (Boatright 2009). The rebellious antics make sense on behalf of PeopleSoft rejecting the unsolicited takeover. The merger seemed more beneficial to the Oracle Corporation, who had interest in acquiring J. D. Edwards, rather than PeopleSoft’s software and employees. The

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